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Lesson 10 min 20 XP

Correlation vs Causation

Why 'X is associated with Y' does not mean X causes Y — and how to spot the difference.

The Fundamental Distinction

Correlation means two variables move together — when one increases, the other tends to increase (or decrease). Causation means one variable directly produces a change in another. Correlation is necessary for causation but is not sufficient to prove it.

Ice cream sales and drowning deaths are strongly correlated. Ice cream does not cause drowning — both increase in summer due to a confounding variable (hot weather). This example is obvious, but in public policy, confounding variables are often hidden and the stakes are much higher.

Correlation vs Causation | Model Diplomat