Basic Statistics and Data Analysis

Lecture notes, MCQS of Statistics

The correlation coefficient is a measure of the co-variability of variables.

High Correlation does not Indicates Cause and Effect

The correlation coefficient is a measure of the co-variability of variables. It does not necessarily imply any functional relationship between variables concerned. Correlation theory does not establish any causal relationship between the variables. Knowledge of the value of coefficient of correlation r alone will not enable us to predict the value of Y from X.

Sometimes their is high correlation between unrelated variable such as number of births and numbers of murders in a country. This is spurious correlation.

For example suppose there is a positive correlation between watching violence movies and violent behavior in adolescence. The cause of both these could be a third variable (extraneous variable) say, growing up in a violent environment which causes the adolescence to watch violence related movies and to have violent behavior.

The Author

Muhammad Imdadullah

Student and Instructor of Statistics and business mathematics. Currently Ph.D. Scholar (Statistics), Bahauddin Zakariya University Multan. Like Applied Statistics and Mathematics and Statistical Computing. Statistical and Mathematical software used are: SAS, STATA, GRETL, EVIEWS, R, SPSS, VBA in MS-Excel. Like to use type-setting LaTeX for composing Articles, thesis etc.

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