Certificate in Business Data Analytics (CBDA) — Question 27

After analyzing sales data, the analytics team finds that the older the customer, the more expensive the neckties purchased. The team felt this was a breakthrough insight but on closer analysis realized that other factors could account for this relationship.
This is a clear indication that:

Answer options

• A. Correlation between variables does not imply causation
• B. Causation has no relationship with correlation
• C. Correlation between variables implies causation
• D. Causation between variables does not imply correlation

Correct answer: A

Explanation

The correct answer, A, highlights that just because two variables are correlated does not mean one causes the other. Options B and D are incorrect as they misrepresent the relationship between causation and correlation. Option C is also wrong because it incorrectly states that correlation indicates causation.