What is correlation vs causation?

< 1 min read

Correlation means two variables move together, but it does not prove one causes the other.
In one project, we noticed that higher marketing spend was correlated with higher sales.
However, that did not automatically mean marketing spend caused the increase.
Causation means one variable directly influences the other.
For example, offering a discount directly causing an increase in sales volume.
Correlation can be coincidental or influenced by a third factor.
Statistical testing and controlled experiments help establish causation.
As a BA, it’s important not to assume cause based only on correlation.

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