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LinkedIn: Correlation vs. Causation?

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Ever noticed how sometimes two things move in sync, but one doesn’t necessarily cause the other? πŸ€” Here’s why we should dig deeper:

πŸ” Key Considerations:

  • Confounding Variables: Other hidden factors might be at play.
  • Reverse Causality: What if the effect is actually causing the cause?
  • Coincidental Correlation: Some patterns are just happy coincidences.

πŸ’‘ Two classic examples from Statistics 101:

  • Ice cream sales & Shark attacks: Correlation: Positive, but in reality: Seasonal effects come into play (people swim more in Summer and eat more ice cream)
  • Height & Reading Ability in Children: Correlation: Positive, but actually: Age is the key (Of course, older kids are taller and better readers)

πŸ“Š Digging Past the Usual: To truly understand causation, we need to go beyond mere observation and utilize techniques like randomized controlled trials, natural experiments, or instrumental variables.

πŸ”„ Simpson’s Paradox: Sometimes, a trend that appears in different groups of data disappears or reverses when these groups are combined. Always analyze data within the right context.

🧠 Pearl’s do-operator: p(y|do(x)) β‰  p(y|x). This concept from Judea Pearl helps distinguish between mere correlation and causation by simulating an intervention in the model.

🌟 Always Ask: “What’s the underlying mechanism?”

Stay curious and keep questioning! πŸš€

Funny image on how correlation and causation can be misinterpreted

#CausalInference #DataScience #Statistics #CriticalThinking #CorrelationAndCausation