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Chapter 5: Bivariate Data

5-5 Correlation and Causation

It is important to understand the nature of the relationship between the

independent variable

x

and the dependent variable

y

. Listed are some

possibilities that one should consider.

There may be a direct cause-and-effect relationship between the two

variables. For example,

may cause

To illustrate, lack of water

causes dehydration, intensive exercise causes thirst, heat causes ice

cream to melt, etc.

There may be a reverse cause-and-effect relationship between the two

variables. For example,

causes

. To illustrate, one may believe that

bad grades may be caused by absences, but one should not fail to also

consider the fact that bad grades may cause absences.

The relationship may be due to chance or coincidence. To illustrate, one

may find a relationship between the number of suicides and the increase

in the sale of bagels. One can only conclude that any association

between these two variables must be due to chance.

The relationship may be due to confounding. That is, the relationship

may be due to the interrelationships between several variables.

The next illustration shows the distinction between association and

causation. For example, a large correlation (negative or positive) does not

imply causation. Suppose that a moderately high linear correlation is

observed between the weekly sales of hot chocolate and the number of

weekly skiing accidents during the skiing months in the USA. One can

reasonably conclude that hot chocolate sales could

not cause

skiers to have

accidents while skiing, and that more skiing accidents could

not cause

an

increase in sales of hot chocolate. Since the two variables are not actually

related, what could explain such a relationship? The apparent linear

relationship between the two variables may be caused by a third variable. In

this case, the values of the variables may be due to the weather conditions

during the winter months during the skiing season.

That is, the weather conditions may be causing an increase or a decrease in

both the number of weekly skiing accidents and the weekly hot chocolate

sales during the winter months. Thus, although the correlation between the

two variables is moderately high, the correlation is not causing the