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Cause and Effect: Correlation vs. Causation in Statistical Analysis

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7 min readNov 16, 2023

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Correlation and causation are two concepts in statistics and research that are often discussed together but represent distinct ideas. Understanding their differences is crucial for proper interpretation of data and research findings.

I. Correlation:

1. Definition:

  • Statistical relationship between two variables.
  • Indicates how changes in one variable are associated with changes in another.
  • Measured using correlation coefficients (e.g., Pearson’s correlation coefficient).
  • Correlation can be positive (both variables increase or decrease together), negative (one variable increases while the other decreases), or zero (no apparent relationship).
  • Only measures linear relationships; non-linear relationships may not be accurately captured.
  • Does not imply causation; a strong correlation doesn’t prove one variable causes the other.
  • Vulnerable to outliers that can disproportionately influence the coefficient.

2. Measurement:

  • Quantifies the strength and direction of the relationship between two variables.
  • Ranges from -1 to 1.
  • Perfect Positive Correlation (r = 1): Both variables increase or decrease together at a constant rate.
  • Perfect Negative Correlation (r = -1): One variable increases while the other decreases at a constant rate.
  • No Correlation (r = 0): Indicates the absence of a linear relationship between the variables.
  • The closer r is to 1 or -1, the stronger the correlation.
  • Positive r values indicate a positive correlation (both variables move in the same direction).
  • Negative r values indicate a negative correlation (variables move in opposite directions).
  • A correlation close to 0 suggests a weak or no linear relationship.

3. Example:

  • If there is a positive correlation between hours of study and exam scores, it means that as the number of hours studied increases, exam scores…

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