From the course: Data-Driven Decision-Making for Business Professionals
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Identifying conclusions, not causation
From the course: Data-Driven Decision-Making for Business Professionals
Identifying conclusions, not causation
- Okay, so you're looking at some data of pizza restaurants, and you notice that the neighborhoods that had the highest amount of pizza delivery orders last summer also had the highest amount of plumbing repair orders for the county. So does ordering pizza cause plumbing repairs? Or did the plumbing repairs lead to ordering more pizza? Or is this just a chance of correlation versus what we call causation? Correlation just means any kind of relationship or association that happens. You ever wear a similar shirt or pants as a colleague in the office? You just happened to correlate that day, nothing planned, nothing affected, just happened. Now causation, this is important. This is because is it's not just something that happened, but rather its effect on something else. Data that shows causation is more powerful because you learn the triggers. You learn what can affect another item. You want data to help you show the…
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