Defining Correlation and Causation
Correlation is a statistical measure that describes a mutual relationship or connection between two or more things. When two variables tend to move together, they are correlated. Causation, on the other hand, indicates that one event is the direct result of the occurrence of another event; there is a cause-and-effect relationship.
Example: Ice Cream and Sunburns
A classic example is the correlation between ice cream sales and the number of sunburns. As ice cream sales increase, so do sunburns. However, eating ice cream does not cause sunburns. A third variable, hot weather, causes both an increase in ice cream consumption and more people getting sunburned. This illustrates the famous principle: 'correlation does not imply causation'.