From the course: Tips to Boost Your Analytical Thinking

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Remember correlation doesn't imply causation

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…

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