We cannot conclude that one variable causes a change in the other.
What is meant by correlation ?
- Any statistical association between two random variables or bivariate data, whether causal or not, is referred to in statistics as correlation or dependency.
- Although "correlation" can mean any kind of link in the widest sense, in statistics it often refers to the strength of a pair of variables' linear relationships.
- Examples of common dependent phenomena include the relationship between parent and child height and the relationship between a good's price and the number of units buyers are prepared to buy, as shown in the so-called demand curve.
- Because they can reveal a predicted relationship that can be used in practise, correlations are helpful. The relationship between electricity demand and weather, for instance, may cause an electrical company to supply less power on a mild day.
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