Correlation vs. Causation

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What is correlation?

Back

Correlation refers to a statistical relationship between two variables, where changes in one variable are associated with changes in another. However, correlation does not imply that one variable causes the other to change.

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What is causation?

Back

Causation indicates that one event is the result of the occurrence of another event. In other words, a change in one variable directly causes a change in another.

Front

Example of correlation: Ice cream sales and temperature.

Back

As temperature increases, ice cream sales also increase. This is a correlation, but it does not mean that higher temperatures cause more ice cream to be sold.

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Example of causation: Rain causes the ground to be wet.

Back

When it rains, the ground becomes wet. This is a clear cause-and-effect relationship.

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What does a correlation coefficient of r = 1 indicate?

Back

A correlation coefficient of r = 1 indicates a perfect positive correlation, meaning that as one variable increases, the other variable also increases in a perfectly linear manner.

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What does a correlation coefficient of r = -1 indicate?

Back

A correlation coefficient of r = -1 indicates a perfect negative correlation, meaning that as one variable increases, the other variable decreases in a perfectly linear manner.

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What does a correlation coefficient of r = 0 indicate?

Back

A correlation coefficient of r = 0 indicates no correlation between the two variables, meaning that changes in one variable do not predict changes in the other.

Front

Can correlation imply causation?

Back

No, correlation does not imply causation. Just because two variables are correlated does not mean that one causes the other.

Front

Example of a spurious correlation: Number of people who drowned and ice cream sales.

Back

Both may increase during summer months, but one does not cause the other.

Front

What is a scatterplot?

Back

A scatterplot is a graphical representation of two variables, showing the relationship between them. Each point represents an observation.