Hi

Just a small point ... the GDP axis is NOT linear ... it is a logarithmic 
scale. Note the 3 values given at equal intervals are 400, 4000, and 40000, the 
logs of which are 2.6, 3.6, and 4.6.  It is this transformation that makes the 
relationship appear linear.  In fact there is a marked curvilinearity such that 
the larger the GDP the greater the increase needed to produce a change 
equivalent to that observed for lower GDPs.  This same curvilinearity is 
observed in the relationship between GDP (or other measures of wealth) and 
Happiness or Subjective Well Being.  

One implication of this is that the gap between high and low GDP countries is 
MUCH larger than it might seem.  Only $3600 increase needed to get from step 1 
to step 2, but $36,000 increase needed to get to step 3.  That is, there is a 
lot more inequity in the world than the graph suggests, all of which needs to 
be overcome before we're all crowded into the upper right quadrant.

Take care
Jim

James M. Clark
Professor of Psychology
204-786-9757
204-774-4134 Fax
j.cl...@uwinnipeg.ca

>>> John Kulig <ku...@mail.plymouth.edu> 14-Dec-10 1:59 PM >>>

As my students would say, really cool! I was looking (eyeball only) to see if 
the line of best fit remained about the same through the years ... despite some 
fluctuations, the basic positive (sort of linear) correlation remained. Now, if 
we achieved what he suggested at the end - greater wealth and more equality - 
the correlation would automatically weaken, the old "restriction of range" 
issue, as everyone piles into the upper right quadrant. 

==========================
John W. Kulig, Ph.D.
Professor of Psychology
Director, Psychology Honors 
Plymouth State University 
Plymouth NH 03264 
==========================

----- Original Message -----
From: sbl...@ubishops.ca 
To: "Teaching in the Psychological Sciences (TIPS)" <tips@fsulist.frostburg.edu>
Sent: Tuesday, December 14, 2010 2:25:25 PM
Subject: [tips] The joy of stats

A remarkable graphical display of economic progress at
http://www.youtube.com/watch?v=jbkSRLYSojo 

Pretty neat, eh?

More on this in David Brooks' NY Times column at 
http://tinyurl.com/2vyv76d 

Stephen

--------------------------------------------
Stephen L. Black, Ph.D.          
Professor of Psychology, Emeritus   
Bishop's University
Sherbrooke, Quebec, Canada               
e-mail:  sblack at ubishops.ca
---------------------------------------------

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