Comment by tcgv
6 years ago
That's very interesting. In the car driving example we can define three variables: 1) Throttle 2) Speed 3) Elevation derivative
If "3" is constant (ex: flat terrain) then "1" and "2" will have strong correlation. However if "2" is constant (ex: cruise control) as in your example, "1" and "3" will have strong correlation.
In the economic example, however, this kind of analisys should be much more complex and take plenty of variables into account.
The key point being identifying those variables and ensuring they remain constant (i.e. in that example - tire pressure, elevation, fuel load etc.)