# Positive correlation and a causal relationship

### Statistical Language - Correlation and Causation

A correlation is a mathematical relationship that exists between two variables. In a positive correlation, as one variable increases, so does the. Positive correlation is a relationship between two variables in which both While the correlation exists, causation may not; thus, while certain. Although correlation may imply causality, that's different than a cause-and-effect relationship. For example, if a study reveals a positive.

As the sales of ice creams is increasing so do the sales of sunglasses. Causation takes a step further than correlation. It says any change in the value of one variable will cause a change in the value of another variable, which means one variable makes other to happen.

It is also referred as cause and effect. When a person is exercising then the amount of calories burning goes up every minute.

Former is causing latter to happen. Ice cream sales is correlated with homicides in New York Study As the sales of ice cream rise and fall, so do the number of homicides. Does the consumption of ice cream causing the death of the people?

## Australian Bureau of Statistics

Correlation does not mean causality or in our example, ice cream is not causing the death of people. When 2 unrelated things tied together, so these can be either bound by causality or correlation. In Majority of the cases correlation, are just because of the coincidences. So the less the information we have the more we are forced to observe correlations. Similarly the more information we have the more transparent things will become and the more we will be able to see the actual casual relationships.

The relationship is therefore causal.

• Why correlation does not imply causation?

A bank manager is concerned with the number of customers whose accounts are overdrawn. Half of the accounts that become overdrawn in one week are randomly selected and the manager telephones the customer to offer advice.

### causality - Under what conditions does correlation imply causation? - Cross Validated

Any difference between the mean account balances after two months of the overdrawn accounts that did and did not receive advice can be causally attributed to the phone calls. If two variables are causally related, it is possible to conclude that changes to the explanatory variable, X, will have a direct impact on Y.

Non-causal relationships Not all relationships are causal.

Correlation vs. Causation

In non-causal relationships, the relationship that is evident between the two variables is not completely the result of one variable directly affecting the other.

In the most extreme case, Two variables can be related to each other without either variable directly affecting the values of the other. The two diagrams below illustrate mechanisms that result in non-causal relationships between X and Y.

If two variables are not causally related, it is impossible to tell whether changes to one variable, X, will result in changes to the other variable, Y. For example, the scatterplot below shows data from a sample of towns in a region.