LETTER: Racism dispute might be due to Simpson’s paradox
Medical scheme investigation should look deeper into data
I wish to add to the discussion on possible racism by medical schemes (“Interim report finds racial bias in outcomes of fraud probes by medical schemes (https://www.businesslive.co.za/bd/national/2021-01-19-interim-report-finds-health-professionals-suffer-racism/)”, January 19). Your report buzzed my statistical antennae twice.
First, much was made of the correlation between racial status and the outcome of fraud, waste and abuse proceedings. However, it is important to note that correlation does not necessarily mean causation. Two variables might be moving together because they are both influenced by a third variable. Related to this context of possible discrimination and confounding variables is Simpson’s paradox, which is best illustrated with another story of possible discrimination. ..
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