Why should BAs be careful with correlation insights?

< 1 min read

BAs should be careful with correlation insights because correlation does not prove cause and effect.
In one project, we saw a strong correlation between marketing spend and revenue growth.
However, deeper analysis showed seasonality was the real driver behind both.
Acting only on correlation can lead to incorrect business decisions.
There may be hidden variables influencing both metrics.
Correlation can also be coincidental, especially in large datasets.
As a BA, I validate insights using additional analysis or business context.
So correlation is a starting point for investigation, not final proof.

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