McDonald's Theory | Difference between Causality and Correlation | by Moral of the story is

Correlation doesn't imply causation. In this video, we define
What is "correlation does not imply causation."
We face a lot of correlational studies every day. The newspapers are filled with research linking various things to each other. But many times, these relationships are just correlational. And we can make sub-optimal decisions due to these unproven theories.
So it becomes necessary to understand- Why "correlation does not imply causation"?
Correlation between two variables can be due to a confounding variable. So we'll understand- What are confounding variables?
After watching this video, you will be able to answer these questions as well-
What is the difference between causality and correlation?
How to understand the difference between correlational and experimental studies?
When does correlation not imply causation?

The difference between correlational and experimental studies is not very well known but it is vital. Conducting a correlational study is easier as compared to an experimental one. The problem arises when we start taking correlation as causation. Making decisions on the basis of these studies may decrease your chances of achieving the goals you have in mind

#MentalModels #CausalityvsCorrelation #Moralofthestoryis

Audio Credits
Youtube Audio library
Graphics Credits

Data resources-
The Great Mental Models - Shane Parrish
Super thinking the big book of mental models - Gabriel Weinberg and Lauren McCann
Mental Models - Peter Hollins
Poor Charlie's Almanac - Charles T Munger
Moral of the story is
moralofthestoryis

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