Start by clearly defining Simpson's paradox as a reversal of association when data are aggregated versus stratified, then construct a simple 2x2x2 example with explicit numbers. Walk through the weighted averages to show the reversal, explain the causal mechanism using confounding and DAGs, and discuss when to trust the aggregate versus subgroup estimates, emphasizing that the choice depends on the causal question and assumptions.
Pro tip: Use a real-world inspired example like a clinical trial with unequal group sizes, and explicitly state the causal assumptions (e.g., no unmeasured confounding) that justify your preferred estimate. This shows you understand that Simpson's paradox is not just a statistical artifact but a causal inference issue.
State that Simpson's paradox occurs when an association present in subgroups reverses or disappears when subgroups are combined. Emphasize it's a form of confounding by a third variable.
Create a 2x2x2 table with a treatment, outcome, and a confounding variable (e.g., disease severity). Show treatment better in each severity stratum but worse overall due to unequal allocation.
Compute subgroup success rates and overall rates using weighted averages. Show that the overall rate is a weighted sum of subgroup rates, and the weights differ between treatment and control, causing reversal.
Explain that the confounding variable is a common cause of treatment and outcome. Draw a DAG: Confounder -> Treatment, Confounder -> Outcome. The aggregate estimate is biased because it does not condition on the confounder.
Mention stratification, regression adjustment, propensity scores, and standardization. Explain that the subgroup-conditioned (adjusted) estimate is causal if the confounder is the only confounder and we condition on it. The aggregate estimate is appropriate if the subgroups are not meaningful or if the question is about the population as a whole without causal inference.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.