Chapter 4.5, Problem 16HP

To determine

To explain: the difference between correlation and causation.

Explanation of Solution

“The correlation is not causation” means that just because two things correlate does not necessarily mean that one causes the other.

Correlation between two things can be caused by a third factor that affects both of them. This sneaky hidden third wheel is called a confounder.

A correlation between variable, however does not automatically mean that the change in one variable is the cause of the change in the values of the other variable.

Correlation does not prove causation because a correlation doesn’t tell us the cause and effect relationship between two variables. Don’t know if $x$ causes $y$ vice versa, or if $x$ and $y$ are cause by a third variable. The only things a correlation tells us is the association link between variables.