Question

If you find a strong positive correlation between poverty and education level, can you conclude that education is a causative factor in poverty? Why or why not? Can you use a regression model to estimate a value for y if there is no linear correlation? What are 2 things you learned in the class you did not know prior to taking it?

Answer 1

1. The value of correlation coefficient just explains the extent/ strength of linear relationship between two variables. It does not indicate any causative effect. Therefore, if there is a strong positive correlation between poverty and education level, it cannot be concluded that education is a causative factor in poverty.
2. A linear regression model is based on the assumption that there is strong linear correlation between the two variables. Hence, no, if there is no linear correlation between y and x, a linear regression model won't be much useful for estimating y.

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