Posts tagged logic

If Correlation Doesn’t Imply Causation, Then What Does?

Medium, logic, statistics, correlation, causation, causality

We’ve all heard in school that “correlation does not imply causation,” but what does imply causation?! The gold standard for establishing cause and effect is a double-blind controlled trial (or the AB test equivalent). If you’re working with a system on which you can’t perform experiments, is all hope for scientific progress lost? Can we ever understand systems that we have limited or no control over? This would be a very bleak state of affairs, and fortunately there has been progress in answering these questions in the negative! So what is causality good for? Anytime you decide to take an action, in a business context or otherwise, you’re making some assumptions about how the world operates. That is, you’re making assumptions about the causal effects of possible actions.