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
    warehouse accidents
    Data Analytics and the Future of Warehouse Safety
    10 Min Read
    stock investing and data analytics
    How Data Analytics Supports Smarter Stock Trading Strategies
    4 Min Read
    predictive analytics risk management
    How Predictive Analytics Is Redefining Risk Management Across Industries
    7 Min Read
    data analytics and gold trading
    Data Analytics and the New Era of Gold Trading
    9 Min Read
    composable analytics
    How Composable Analytics Unlocks Modular Agility for Data Teams
    9 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

The R-Files: Martyn Plummer
IP Scores Are Crucial to the Future of Data Security in 2022
Using Data Analytics for Selecting Staff Augmentation & Managed Services
Examples of Using Kanban Boards with Data Visualization Tools
Savvy Companies Find Brilliant Ways To Benefit From Inbound Call Data

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

ai and satelite technology
How Machine Learning Improves Satellite Object Tracking
Exclusive Machine Learning
Diverse Research Datasets
The 5 Best Platforms Offering the Most Diverse Research Datasets in 2026
Big Data Exclusive
macro intelligence and ai
How Permutable AI is Advancing Macro Intelligence for Complex Global Markets
Artificial Intelligence Exclusive
warehouse accidents
Data Analytics and the Future of Warehouse Safety
Analytics Commentary Exclusive

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

data science use advertising
Big DataMarketing

The Low-Down On Using Data Science And Statistics In Advertising

6 Min Read

Business People Are Dumb On Average(s)

7 Min Read

How Mailana Visualizes My Top 10 Loquacious Friends on Twitter

4 Min Read

Patterns patterns everywhere

17 Min Read

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

ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
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?