Question

Why is it important to be careful to distinguish between correlation and causation? In your business experience, how would you go about making sure that these issues do not get confused and mixed up?

Answer 1

ANSWER:

• A relationship between's factors doesn't naturally imply that the adjustment in one variable is the reason for the adjustment in the estimations of the other variable. This is start inverse to 'Causation', which shows that one occasion is the consequence of the event of the other occasion; for example there is a causal connection between the two occasions .

• Along these lines, confusing connection with causation will prompt wrong derivations. In business , I would possibly close connection as casusation if different parameters are held consistent. I will just take care to discover any idle variable, that may causing the false connection between the 2 orinigal variable.

• An expansion in populace implies an expansion in utilization. <- - this might be correaltion yet a deceptive connection.

• The inert variable ' buying limit per individual' is answerable for increment in populace ( in light of the fact that one would now be able to bear to have more children) , and furthermore increment utilization per individual. Henceforth, increment in utilization can be wronly credited to increment in populace.