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Data & Analytics · Foundational

Correlation vs Causation

The principle that a statistical association between two variables does not prove that one causes the other.

Definition

Correlations can arise from confounders, reverse causality or coincidence. Establishing causation requires randomized experiments or careful causal inference methods.

Example

Ice cream sales and drownings both rise in summer because of temperature, a confounder.

Exam tip

To claim causation, use a controlled, randomized experiment.

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