What is Simpson's Paradox?

What is Simpson's Paradox?

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Simpson's Paradox Simpson's paradox is a statistical phenomenon in which a trend appears in several sets of data but disappears or reverses when the groups are combined.

Simpson's paradox, also known as the YuleSimpson effect in statistics, occurs when the marginal association between two categorical variables differs qualitatively from the partial association between the same two variables after one or more other factors are controlled for.

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What effect does Simpson's paradox have on data analytics?

The necessity of comprehending the data and its limits is demonstrated by Simpson's paradox. Analytics projects frequently provide us with situations in which the data tells us a storey that contradicts our assumptions.

As the world moves toward datasets gathered in extremely short periods of time, critical thinking and the search for hidden biases and factors in data become increasingly important.

If the data is not stratified deeply enough, the Simpson paradox may exist. In such circumstances, taking a closer look at the data can teach you something new. Even if the change is little, excessive aggregation renders the data useless and causes bias.

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Why are we so focused on Simpson's dilemma right now?

Even simple statistical analysis can mislead and encourage erroneous conclusions without sufficient insight and topic comprehension, as demonstrated by Simpson's Paradox.

However, if we disaggregate too much, we won't be able to find the underlying pattern due to a lack of data science or understanding. In the age of real-time data analytics, we're aiming to discover trends and make decisions in a very short amount of time.

The variance has increased, but the bias has decreased.

Shorter time spans are more prone to cause short-term misdirection, which can mask the true long-term trend.

As a result, erroneous judgments and actions may be reached.

The Simpson Paradox is thus the pinnacle of the Bias and Variance Trade-off. https://www.learnbay.co/data-science-course/data-analytics-course-online-in-bangalore/

Thank You

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