From the course: Tips to Boost Your Analytical Thinking
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Remember correlation doesn't imply causation
From the course: Tips to Boost Your Analytical Thinking
Remember correlation doesn't imply causation
- Correlation means there is a statistical relationship between variables. Causation means that a change in one variable causes a change in another. So does correlation imply causation? Spoiler alert, it doesn't, but it's a common mistake made assuming that one variable causes another because there is an apparent correlation between them. Understanding this fallacy better prepares you with an analytical mindset, to critically evaluate data, establish relationships between variables, and avoid getting pulled into drawing the wrong conclusions. Case in point, let's consider ice cream sales and cases of sunburn. If you collect data on these two points, they'll likely be correlated. They both follow a similar increasing pattern called a positive correlation. Looking at the data alone, we might conclude that one causes the other. Common sense tells us that's not the case though. They are both likely caused by an increase in temperature as we head into summertime. When two or more variables…
Contents
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Flex analytical thinking to make better decisions1m 47s
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Tap into higher-order thinking2m 16s
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Uncover the right problem2m 2s
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Add data to your thinking process1m 41s
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Focus on the right data for the problem at hand1m 46s
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Check the size of your samples2m 24s
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Move beyond absolute numbers2m 57s
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Identify the risk of averages3m 11s
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Remember correlation doesn't imply causation2m 45s
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Keep it simple to tap into an analytical mindset2m 38s
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Make large numbers relatable with social math2m 33s
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Teach others to boost your analytical thinking1m 58s
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Sharpen your analytical thinking with brain games1m 28s
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