Question

Explain how and why Correlation is NOT Causation.

Answer 1

Let us take a small example to understand this. Suppose for a particular city population is an increasing function of time i.e. polpulation is increasing day by day. Then no of school going students is also an increasing function of time as it is an effect of increasing population. Similarly demand for any crop is also increasing as it is also an effect of increasing population. Now if we calculate the correlation coefficient between the no of school going students and demand of crops the it comes out to be high positive correlation though no one is the cause of the other. Because of the positive association with the third variable i.e. population this happens. So, Correlation is NOT causation.