Monday, December 22, 2008

One directional correlation

When high oil prices were cited as reasons for transport fare hikes, we all thought that was logical.

When oil prices dropped but not the fares, it was explained that these two were not linked directly.

Hmmmm... linked or not linked?

It was further explained, “If there is a direct link, it must go both ways. If we have that system, there would (have been) a 40-per-cent increase in public transport fares.” What commuters got, instead, was a 0.7-per-cent average increase.


Firstly, I doubt anybody believe a "direct" link such as that described above. If there were some who believed so, then they have probably been misled into thinking so when high oil prices were cited as reasons for fare hikes.

Secondly, there is indirect link. Thus, if a 40% increase in oil prices correspond to 0.7% average increase, then when oil prices drop, there should be some decrease.

Are the audience being treated as primary school kids?

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