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Understanding Correlation and Cause Print

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The distinction that matters most.

WHAT CORRELATION MEANS

Two things moving together.

WHAT IT DOES NOT MEAN

That one causes the other.

WHY THEY MOVE TOGETHER

One causes the other The other causes the one Both share a third cause Coincidence

THAT THIRD ONE

Extremely common and constantly overlooked.

Ice cream sales and sunburn rise together. Neither causes the other.

WHY THIS MATTERS COMMERCIALLY

Businesses attribute results to actions that did not cause them, and repeat them.

WHAT TO ASK

What else changed at the same time? Could both follow from something else? Did the effect follow the cause in time?

WHAT ESTABLISHES CAUSE MORE STRONGLY

Changing one thing deliberately and observing Comparing a group affected against one not affected

WHAT TO DO WHEN YOU CANNOT ESTABLISH IT

Say so.

Treat it as a hypothesis, not a finding.

WHAT NOT TO DO

Build a strategy on an assumed cause.


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