Correlation vs Causation
Learn why two variables that rise and fall together do not always cause each other, and how scientists actually prove cause and effect.
Definition
- 1. causes ** (causation): more hours of practice lead to a better free-throw percentage.
- 2. causes ** (reverse causation): the cause runs the other way around.
- 3.A third variable causes both (a confounding variable, also called a lurking variable): hot weather raises both ice cream sales and sunburn cases.
- 4.Coincidence (a spurious correlation): the pattern appeared by chance.
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Worked Examples
Describe the correlation
Ask whether there is a mechanism
Look for a third variable
Name the explanation
Answer: No. The correlation is real, but temperature is a confounding variable that raises both ice cream sales and sunburn cases. Banning ice cream would not prevent a single sunburn.
Common Mistakes
Thinking a strong correlation proves causation (", so must cause ")
Why it's wrong: The correlation coefficient only measures how closely two variables move together. In the seaside town example, ice cream sales and sunburn cases have , and neither causes the other.
Correct: A strong tells you the variables are related. To claim causation you need a randomized controlled experiment or very strong additional evidence.
Assuming the cause runs in the direction you expect
Why it's wrong: Two correlated variables can be connected in either direction. People who take more painkillers report more headaches, but the headaches cause the painkillers, not the other way around.
Correct: Always ask: could be causing ? Check which variable can change first and which one reacts.
Forgetting about confounding variables that are not in the data
Why it's wrong: A lurking variable is often not measured at all. In the coffee study the overall numbers hide smoking, which is the real cause.
Correct: Ask what else differs between the groups (age, weather, income, population, health). If possible, compare the groups within the same level of that variable.
Comparing counts instead of rates
Why it's wrong: A big city has more accidents, more libraries and more ice cream shops simply because it has more people. Population is a hidden third variable.
Correct: Divide by the group size and compare rates, such as cases per people (percent) or per residents.
Interactive Visual
Scatter Plot
Ice cream sales vs sunburn cases (made-up data, 8 summer weeks, labels = average temperature)
ŷ = 1.47x − 1.01
r = 0.998 · strong positive correlation
Tap a point to see its coordinates.
Scatter Plot
The confounding variable: temperature vs ice cream sales
ŷ = 0.75x − 7.63
r = 0.997 · strong positive correlation
Tap a point to see its coordinates.
Bar Chart
Randomized experiment: share of each group that caught a cold
Interactive Sandbox
Expression Calculator
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Practice Problems
18 problemsWhy It Matters
- News headlines: "People who drink coffee live longer" or "Kids who eat breakfast get better grades". Is it the coffee and the breakfast, or something else about these people?
- Health: A medicine is only approved after randomized trials show that it, and not chance, makes patients better.
- Business: Companies test two versions of a website on randomly chosen visitors before deciding which one sells more.
- Public policy: Cities decide where to spend money on schools, police or bike lanes. A wrong cause means wasted money.
- Your own decisions: Knowing the difference protects you from ads and fake science that use a real correlation to sell a false cause.
Real World Applications
Medical Trials
New medicines are tested in randomized controlled trials. Patients are assigned to the medicine or to a placebo by chance, so that the medicine is the only systematic difference between the groups.
Example:
In a famous type of trial, neither the patients nor the doctors know who gets the real medicine (a double-blind trial). This stops expectations from changing the results.
A headache medicine is tested on patients, randomly split into two groups of . In the medicine group, patients still have frequent headaches after a month. In the placebo group, patients do.
By how many percentage points is the headache rate lower in the medicine group?
Step 1: Write the mathematical expression
Compute :
Judging News Headlines
Many health and lifestyle headlines are based on observational studies, where researchers only watch what people already do. Such studies can find correlations but cannot prove causes.
Example:
"Students who play a musical instrument get better grades." Families that pay for music lessons may also have more time and money for school support. That is a possible confounding variable.
A journalist checks health headlines. of them are based only on observational studies. The others are based on randomized experiments.
What percent of the headlines are based on randomized experiments?
Step 1: Write the mathematical expression
Compute :
City Statistics
City data is full of correlations caused by population: bigger cities have more of almost everything. Planners compare rates per $100\,000$ residents to remove this confounding variable.
Example:
Across many cities, the number of libraries is strongly correlated with the number of traffic accidents. Libraries do not cause accidents: both grow with the number of people living in the city.
City A has residents, libraries and traffic accidents per year. City B has residents, libraries and traffic accidents per year.
How many traffic accidents per residents does City A have?
Step 1: Write the mathematical expression
Compute :
Key Takeaways
- 1Correlation means two variables change together; causation means one actually produces a change in the other
- 2A strong correlation (even close to or ) never proves causation on its own
- 3A correlation can come from causation, reverse causation, a confounding (lurking) variable or coincidence
- 4A confounding variable affects both variables, like temperature for ice cream sales and sunburn cases
- 5Compare rates, not counts:
- 6A randomized controlled experiment, with random assignment to a treatment and a control group, is the best way to show cause and effect
Frequently Asked Questions
Glossary
- Causation
- A relationship in which a change in one variable actually produces a change in another variable
- Confounding variable (lurking variable)
- A third variable that affects both variables being studied and can create a correlation between them
- Reverse causation
- When the variable thought to be the effect is really the cause
- Spurious correlation
- A correlation that appears by coincidence or because of a hidden variable, not because of a real cause
- Randomized controlled experiment
- A study in which subjects are assigned to a treatment group or a control group by chance, so the groups differ only in the treatment
- Placebo
- A pill or treatment with no active ingredient, given to the control group so that both groups have the same experience
Formula Card
Rate in a group
Turns counts into percents so groups of different sizes can be compared
Difference of two rates
Measured in percentage points; in a randomized experiment it estimates the effect of the treatment
Expected chance correlations
How many strong-looking correlations appear by pure luck when many unrelated pairs are tested