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It's not only economists that offer this warning. It's true anywhere that correlation coefficients are to be interpreted. Let me offer an example from psychology. In many populations there's a significant correlation between the shoe sizes of people and their intelligence quotients. But no-one would say that increasing a person's shoe size would increase their intelligence!

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Q: Why do economists often say that correlation does not necessarily imply causality?
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What is the implication of any correlation found between the variables?

Correlation is a measure of the degree to which two variables change together. Positive correlation means that the variables increase together and decrease together. Negative correlation means that one variable increases when the other decreases.Correlation does not imply causality.Correlation is a measure of the degree to which two variables change together. Positive correlation means that the variables increase together and decrease together. Negative correlation means that one variable increases when the other decreases.Correlation does not imply causality.Correlation is a measure of the degree to which two variables change together. Positive correlation means that the variables increase together and decrease together. Negative correlation means that one variable increases when the other decreases.Correlation does not imply causality.Correlation is a measure of the degree to which two variables change together. Positive correlation means that the variables increase together and decrease together. Negative correlation means that one variable increases when the other decreases.Correlation does not imply causality.


Which of these does correlation most likely imply causation?

As grade point average increases, the number of scholarship offers increases (apex)


What does correlation does not imply causation mean?

It is saying that two occurrences happening in sequence does not have to mean that the first event was the cause of the second event.


What does a positive correlation between variables x and y imply?

It implies that an increase in x is accompanied by an increase in y. And similarly, they decrease together.


What is true about correlation?

It is a measure of the strength of a linear relationship between one dependent variable and one or more explanatory variables.It is very important to recognise that a high level of correlation does not imply causation. Also, it does not provide information on non-linear relationships.

Related questions

What is the implication of any correlation found between the variables?

Correlation is a measure of the degree to which two variables change together. Positive correlation means that the variables increase together and decrease together. Negative correlation means that one variable increases when the other decreases.Correlation does not imply causality.Correlation is a measure of the degree to which two variables change together. Positive correlation means that the variables increase together and decrease together. Negative correlation means that one variable increases when the other decreases.Correlation does not imply causality.Correlation is a measure of the degree to which two variables change together. Positive correlation means that the variables increase together and decrease together. Negative correlation means that one variable increases when the other decreases.Correlation does not imply causality.Correlation is a measure of the degree to which two variables change together. Positive correlation means that the variables increase together and decrease together. Negative correlation means that one variable increases when the other decreases.Correlation does not imply causality.


What is the relationship between correlation and causation?

correlation implies the cause and effect relationship,, but casuality doesn't imply correlation.


Is a nulliparous woman more likely to develop breast cancer than a woman who has children?

Correlation does not imply causality; the fact that there's a statistical association between two facts doesn't mean that one caused the other, in either direction. That said, it is true that there is a slightly positive correlation between breast cancer likelihood and the fact that a woman has not had any children by age 35.


Are disappointed and disapproved synonyms?

No. Disapproval does not necessarily imply disappointment.


Which of these does correlation most likely imply causation?

As grade point average increases, the number of scholarship offers increases (apex)


What is the correlation coefficient of -0.80 is found between factor A and factor B?

The correlation coefficient is a statistical measure of the extent to which two variables change. A correlation coefficient of -0.80 indicated that, on average, an increase of 1 unit in variable X is accompanied by a decrease of 0.8 units in variable Y. Note that correlation does not imply causation.


What does correlation does not imply causation mean?

It is saying that two occurrences happening in sequence does not have to mean that the first event was the cause of the second event.


What does a positive correlation between variables x and y imply?

It implies that an increase in x is accompanied by an increase in y. And similarly, they decrease together.


What does a correlation coefficient of r -0.01 imply about the graph of a data set?

It suggests that there is very little evidence of a linear relationship between the variables.


What is true about correlation?

It is a measure of the strength of a linear relationship between one dependent variable and one or more explanatory variables.It is very important to recognise that a high level of correlation does not imply causation. Also, it does not provide information on non-linear relationships.


Does selling a document imply ownership?

Not necessarily. You could be acting as an agent, a broker, a merchant or a middle-man in the transaction.


Does a negative acceleration necessarily imply that a body is slowing down?

No. Negative acceleration simply means it is accelerating in a particular direction.