Table of contents
- 1. Intro to Stats and Collecting Data55m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically1h 45m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables2h 33m
- 6. Normal Distribution and Continuous Random Variables1h 38m
- 7. Sampling Distributions & Confidence Intervals: Mean1h 3m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- 9. Hypothesis Testing for One Sample1h 1m
- 10. Hypothesis Testing for Two Samples2h 8m
- 11. Correlation48m
- 12. Regression1h 4m
- 13. Chi-Square Tests & Goodness of Fit1h 20m
- 14. ANOVA1h 0m
1. Intro to Stats and Collecting Data
Intro to Stats
Problem 1.RE.4
Textbook Question
Divorces and Margarine One study showed that there is a very high correlation between the divorce rate in Maine and per capita consumption of margarine in the United States. Can we conclude that either one of those two variables is the cause of the other?

1
Understand the concept of correlation: Correlation measures the strength and direction of a linear relationship between two variables. A high correlation indicates a strong relationship, but it does not imply causation.
Identify the concept of causation: Causation implies that one event is the result of the occurrence of the other event; i.e., there is a cause-and-effect relationship between the two variables.
Consider the possibility of a spurious correlation: A spurious correlation occurs when two variables appear to be related due to the presence of a third variable or purely by chance, rather than a direct causal relationship.
Evaluate the context of the variables: In this case, the divorce rate in Maine and the per capita consumption of margarine in the United States are unlikely to have a direct causal relationship. Consider other factors that might influence both variables independently.
Conclude that correlation does not imply causation: Even with a high correlation, we cannot conclude that one variable causes the other without further evidence or analysis. Additional research would be needed to explore any potential causal relationships.

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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Correlation vs. Causation
Correlation refers to a statistical relationship between two variables, indicating that they change together. However, correlation does not imply causation, meaning that one variable directly affects the other. In the given question, a high correlation between divorce rates and margarine consumption does not mean one causes the other; they may be influenced by other factors or be coincidentally related.
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Spurious Correlation
A spurious correlation occurs when two variables appear to be related but are actually influenced by a third variable or are coincidentally correlated. In the case of divorce rates and margarine consumption, the correlation might be spurious, suggesting that the relationship is not due to direct causation but rather due to other underlying factors or random chance.
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Confounding Variables
Confounding variables are external factors that can affect the relationship between the studied variables, potentially leading to misleading conclusions. In the context of the question, there might be confounding variables affecting both divorce rates and margarine consumption, such as economic conditions or cultural trends, which could explain the observed correlation without implying causation.
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