CAUSATION VERSUS CORRELATION

Causation versus Correlation



Causation versus Correlation

Introduction

The study is related to difference between causation versus correlation. Correlation and causation are two very different concepts and we are exposed to make diagnoses on the basis that there is great convergence between them tends to make these allocations based on results achieved rather than the means used and how to get them. Sometimes, we are influenced by the results we show some large investors or companies and in view of the results attribute a quality to the administration; many times these achievements are the result of any circumstances not necessarily random but may be transient.

Discussion

A market researcher for avoid mistaking a correlation with a causation, have to go looking at the means employed to achieve them, when you know the results, certain companies are certain characteristics and attributes for a certain time there is a correlation between the results obtained and the price. This cause and effect may be due to chance or real but may occur only transiently and that lasting business success is not eternal. Some business successes last several years and is usually due to good management, but the economic environment is rapidly changing and what was once a rational analysis may end up being a senseless obstinacy (Simon, 1954).

An interesting example of the causal relationship we have with the lie detector. The polygraph is known as a lie detector but really what physiological changes detected are generated by the emotional arousal of the individual when there is a divergence between what he says and what he feels, that is, there is a lack of accuracy in their communication. Some of the alterations detected include abnormal heart rhythm, blood pressure and skin temperature. In a survey, market researcher cannot tell if an individual is considered to lie but the ...