Wednesday 30 December 2015

paradoxes - Is this Simpson’s Paradox?

In January, there were 2,700 new sign ups, and 3,500 who opt out. As at end January, there are 60,000 customers in our database.



In February, there were 3,400 new sign ups and 4,300 who opt out. As at end February, there are 59,100 customers in our database.



Looking at the new sign ups and opt out components, we see that :
(a) New sign ups increased by 700 from Jan to Feb
(b) Opt out increased by 800 from Jan to Feb



From Jan to Feb, the no. of customers decreased by 900 in our database. However, my superior queried that the figures look odd - since the new sign ups increased by 700 and opt out increased by 800, the overall number of customers should only decrease by 100.




I tried explaining that the figures will not be able to reconcile, by summing up the difference between months. Needless to say, my explanation was not accepted. Is anyone able to advice on what paradox is this? It seems like it is similar to Simpson's paradox.



Appreciate your advice please!

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