M3 - Correlation vs causation

Question 1

Correlation

Answer 1

a statistical measure (expressed as a number) that describes the size and direction of a relationship between two or more variables.

Question 2

Correlation coefficient (the basics)

Answer 2

The correlation coefficient is a number to measure the strength of a linear relationship between two variables. It’s value ranges from -1 to 1.

positive correlation, negative corellation, no corelation

A value closer to 1 or -1 suggests a strong correlation. If you have a value of 1 or -1 then they are perfectly correlated. A value closer to zero suggests no correlation.

Question 3

Causation

Answer 3

indicates that one event is the result of the occurrence of the other event; i.e. there is a causal relationship between the two events. This is also referred to as cause and effect.

Question 4

How to establish causation

Answer 4

Regression is the statistical technique that relates the dependent variable to one or more independent variables.