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# What’s So Funny About Correlation? - PowerPoint PPT Presentation

What’s So Funny About Correlation?. What is Correlation?. When two things go together: cookies &amp; milk macaroni &amp; cheese peanut butter &amp; jelly. What is Statistical Correlation?. A mutual relationship between two variable quantities .

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Presentation Transcript
What is Correlation?
• When two things go together:
• macaroni & cheese
• peanut butter & jelly
What is Statistical Correlation?
• A mutual relationship between two variable quantities.
• Correlation coefficients measure how closely related the two variables are.
Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate?
Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate?
Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate?

Graph from www.tylervigen.com

Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate?
Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate?
Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate?
Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate?

-0.89905

Why might the amount of uranium stored at nuclear plants correlate with the amount of power they generate?
What is Causation?
• The action of causing something; the relationship between cause and effect.
• Smoking causes cancer
• Sugar causes cavities
• Gravity causes objects to fall
How does per capita consumption of chicken correlate with crude oil imports?

Graph from www.tylervigen.com

How does per capita consumption of chicken correlate with crude oil imports?

Chicken data from USDA. Oil data from Dept. of Energy.

Correlation and Causation
• Correlation is a measure of how well data fit the relationship.
• A correlated relationship between two quantitative variables is not the same as a causal relationship.
• The determination that one thing causes another requires a controlled randomized experiment.
• "Correlation is not causation, but it sure is a hint.“

- Edward Tufte, American Statistician