Question

In: Economics

Explain the difference between causation due to correlation and causation that isn't caused by correlation

Explain the difference between causation due to correlation and causation that isn't caused by correlation

Solutions

Expert Solution

Causation or causality as we call it can be defined as establishing a cause and effect relationship among two events or variables. Causation arises when say two events A and b occurring together or one after the other are responsible for their occurrence. One can say that low visibility and more accidents are the cause of mishap. Since the visibility was low (Event A), the accident rate increased (Event B). Here the two events have a cause and effect relationship. Now if this causation creates an impression that there is correlation between visibility and accidents, then it will be called causation due to correlation. Collection and analysis of big data sets available today are a good example of causation due to correlation. If statistically proven then we can say that it is causation due to correlation.

However the truth is that correlation and causation are two different things. They should not be confused with each other. Either the events are causation or they have a correlation. Causation does not mean that two events have a correlation. Seat belt and injuries can be seen as a causal relation where one may find more injuries amongst people without seat belt as compared to lower or no injuries with people wearing a seat belt. But this just a causal relationship there may be other reasons also for injuries. Here causation is not caused by correlation, it is only a chance event.

Hence we can have both causation due to correlation and causation that isn't caused by correlation but they differ significantly from each other.


Related Solutions

What is the difference between correlation and causation? Explain.
What is the difference between correlation and causation? Explain.
What is the difference between correlation and causation? Offer an example of each as it relates...
What is the difference between correlation and causation? Offer an example of each as it relates to healthcare operations management. Then explain how these concepts are important in identifying and prioritizing operational improvement opportunities.
Explain the distinction between correlation and causation in policy analysis. Give three examples related to policy...
Explain the distinction between correlation and causation in policy analysis. Give three examples related to policy that can be found on normal day bases (such as newspaper). please use the concept of common response and confounding factors while discussing. Be concreate and use statistic approach. It can be anywhere between half a page to page.
Explain the distinction between correlation and causation in policy analysis. Give three examples related to policy...
Explain the distinction between correlation and causation in policy analysis. Give three examples related to policy that can be found in normal day bases (such as newspaper). Be concreate and use statistic approach. It can be anywhere between half a page to page.
Why is it important to be careful to distinguish between correlation and causation? In your business...
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?
v(a) Using examples, outline the differences between correlation and causation. (b) The Excel correlation matrix below...
v(a) Using examples, outline the differences between correlation and causation. (b) The Excel correlation matrix below shows correlation coefficients between cheapest economy and business class fares, flight times and flight distances for non-stop round-trip flights in December 2019 to 12 medium- and long-haul destinations from Manchester Airport (source: flights.google.com, accessed 4th November 2019). Economy Fare Business Fare Time Distance Economy Fare 1.000 Business Fare 0.854 1.000 Time 0.663 0.494 1.000 Distance 0.520 0.317 0.971 1.000 (i) Explain how this correlation...
Explain the difference between an ordinary annuity and an annuity due.
Explain the difference between an ordinary annuity and an annuity due.
Explain the difference between James Baldwin's article" If Black English Isn't a Language, Then Tell Me,...
Explain the difference between James Baldwin's article" If Black English Isn't a Language, Then Tell Me, What Is"? and his speech he delivered at Berkley college in 1979? be specific!
One of the major misconceptions about correlation is that a relationship between two variables means causation;...
One of the major misconceptions about correlation is that a relationship between two variables means causation; that is, one variable causes changes in the other variable. There is a particular tendency to make this causal error when the two variables seem to be related to each other. What is one instance where you have seen correlation misinterpreted as causation? Please describe.
true or false, correlation doesn't imply causation
true or false, correlation doesn't imply causation
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT