When does correlation imply causation?


#1

Given X and Y are correlated, under which scenario can we say confidently that X has caused Y?
What if lurking variables exist always?


#2

I suggest you should read this


#3

Nice read. All the more reason to believe life is nothing but a joke :slight_smile:


#4

Hi @B.Rabbit:

This can only be answered by business logic, where you know the business you know the trends and you state it by your understanding.

For example:

Sales and Marketing cost would be directly correlated: and it fits the common behavior also, meaning the more you will do marketing the more you will get sales and vice-versa.

But a different scenario also stands, lets say print media does not influence our sales, even we see we never get any sales by print media. now this is business logic which you know and you can justify the negative value at this point, for print media the correlation is negative meaning the more we do print media the less the sales is. But you can not say you can decrease the print media and your sales will increase.

I hope you got the message.