Overview
Understanding the difference between correlation and causation is essential in statistics and data analysis. Correlation indicates a relationship between two variables, but it does not mean that one variable causes the other. Misinterpreting correlation as causation can lead to incorrect conclusions...
Key Terms
Example: Height and weight often show a positive correlation.
Example: Smoking causes an increase in lung cancer risk.
Example: Ice cream sales and drowning rates are correlated due to summer weather.
Example: A p-value less than 0.05 typically indicates statistical significance.
Example: A 95% confidence interval suggests we can be 95% sure the true mean lies within this range.
Example: Age, height, and income are all variables.