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for example, if you wanted to do research on whether or not smarter CEOs increase shareholder value, how would you go about it ? Intelligence is hard to measur
by vasilipupkin 11y ago
for example, if you wanted to do research on whether or not smarter CEOs increase shareholder value, how would you go about it ? Intelligence is hard to measure, but we know things like test scores correlate with it to some degree. So, maybe, you would see how well companies do against CEO SAT scores or undergraduate institution they attended or their high school gpa
- krick 11y agoThen you have to admit that measuring correlation between "smarter CEOs" and "shareholder value" is impossible and measure correlation between "CEO SAT scores" and "shareholder value" instead. Yeah, not that click-baity, but that would be a real study, unlike this one.
- malka 11y agoif you have a correlation between A and B, and a correlation between B and C, then A and C are correlated.
- chengsun 11y agoThis is not true in general. Consider two independent fair die rolls, with A and C being the outcomes. Let B be the sum of the outcomes. The higher A is, the higher B is likely to be, so A and B are positively correlated. So are B and C. However there is no correlation between A and C as they are independent.
- malka 11y agoOh. True, thanks for the explanation :)