Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data mining to find the right poly bag makers
    Using Data Analytics to Choose the Best Poly Mailer Bags
    12 Min Read
    data analytics for pharmacy trends
    How Data Analytics Is Tracking Trends in the Pharmacy Industry
    5 Min Read
    car expense data analytics
    Data Analytics for Smarter Vehicle Expense Management
    10 Min Read
    image fx (60)
    Data Analytics Driving the Modern E-commerce Warehouse
    13 Min Read
    big data analytics in transporation
    Turning Data Into Decisions: How Analytics Improves Transportation Strategy
    3 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Newsflash: Correlation is Not a Cause!
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Data Management > Best Practices > Newsflash: Correlation is Not a Cause!
Best PracticesBusiness RulesExclusivePredictive Analytics

Newsflash: Correlation is Not a Cause!

paulbarsch
paulbarsch
5 Min Read
SHARE

Just about every data scientist and statistician knows that correlation doesn’t necessarily confirm causation. However, popular business and social literature often confuse the two concepts. By understanding the maxim of “correlation is not a cause” more clearly, it’s possible to let loose creativity and imagination of the questioning mind.

Just about every data scientist and statistician knows that correlation doesn’t necessarily confirm causation. However, popular business and social literature often confuse the two concepts. By understanding the maxim of “correlation is not a cause” more clearly, it’s possible to let loose creativity and imagination of the questioning mind.

Humans like to think and speak in declarative terms. For a sampling, imagine statements bandied about by pundits such as; “global warming is caused by humans”, or “the Financial Crisis of 2008 was caused by greedy bankers” or “Republicans lost the 2008 election because they didn’t pay enough attention to immigration issues.”

More Read

Business intelligence tools
6 Ways To Raise Your Business Intelligence To The Next Level
Tweets, Viruses and Bubbles
Improve Your Business on Instagram with AI Tools
Use this Strategic Approach to Maximize Your Data’s Value
Can AI Remove The Risk From EHRs?

Psychologist and author Sue Blackmore says the simple reminder that “correlation is not a cause” (CINAC), would improve just about everyone’s mental toolkit. Case in point, in an Edge.org article, she gives an example of people filling up a railway station as a scheduled train approaches.  She asks, “Did the people cause the train to arrive (A causes B)? Or did the train cause people to arrive (B causes A)?” The answer she says is they both depended on a railway timetable (C caused both A and B)!

Editor’s note: Paul Barsch is an employee of Teradata. Teradata is a sponsor of The Smart Data Collective.

In linear systems, cause and effect is much easier to pinpoint. However, the world around us is considered a complex system where there are often multiple variables pushing an outcome to occur. Nigel Goldenfeld, a professor of physics at University Illinois, sums it up best: “For every event that occurs, there are a multitude of possible causes, and the extent to which each contributes to the event is not clear. One might say there is a web of causation.”

And author Richard Bookstaber says that it’s a difficult search to pinpoint cause in complex systems especially because, “a change in one component can propagate through the system to lead to surprising and apparently disproportionate effect elsewhere, e.g. the famous “butterfly effect””.

The concept that in complex systems there is a “web of causation” may not sit right with some individuals, especially since newscasters, publishers, and even a fair portion of scientists prefer to insist on simple declarations of true and false.  However, the very nature of complex systems is that every object is in some way linked to another with either weak or strong ties and often connections are opaque and mysterious. So even a correlation of one, may not necessarily mean A causes B.

Freeing ourselves from the shackles of CINAC thinking means we have the possibility to let loose our imaginations says psychologist Sue Blackmore. Each definitive report should be greeted with skepticism. And when “A causes B” is held up as the answer, Blackmore cautions, then the critical mind automatically gets to work thinking; “Maybe instead, B actually causes A! And if not, what are the other opportunities?”

It’s human nature to try and explain the world around us. However, when it comes to complexity, we should lead discussions with a measure of humility to include questions and possibilities rather than declarations of certainty.

Questions:

  • How does our “aim to explain” end up stifling innovation and creativity?
  • The US Securities and Exchange Commission posited an explanation for the May 6, 2010 “Flash Crash”, but experts are not buying their simplistic explanation of a single “trigger event”. What are your thoughts?
TAGGED:analysisCorrelation does not imply causationstatistics
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

data mining to find the right poly bag makers
Using Data Analytics to Choose the Best Poly Mailer Bags
Analytics Big Data Exclusive
data science importance of flexibility
Why Flexibility Defines the Future of Data Science
Big Data Exclusive
payment methods
How Data Analytics Is Transforming eCommerce Payments
Business Intelligence
cybersecurity essentials
Cybersecurity Essentials For Customer-Facing Platforms
Exclusive Infographic IT Security

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

Squealer Pig’s Persuasive (Mis)Use of Statistics

3 Min Read

Is Your eCommerce Website Suffering From Usability Issues?

8 Min Read

The difference between Statistics and Machine Learning

3 Min Read

The Global Nature of Big Data and Analytics

5 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

data-driven web design
5 Great Tips for Using Data Analytics for Website UX
Big Data
ai chatbot
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?