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Correlation vs. Causation
Grade Level
GMAT
VR.084 Correlation vs. Causation
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An analyst tests fifty lifestyle measures against employee performance and reports the single measure with the strongest correlation, claiming it causes better performance. No correction or replication is reported. Which analysis is best?
A
The strongest of fifty correlations must be causal because it beat the other forty-nine.
B
Multiple testing matters only when the sample is small.
C
Searching many relationships makes a strong-looking correlation likely to arise by chance, and selecting it after the fact provides no causal design or protection against confounding.
D
A single correlation is sufficient whenever performance is measured objectively.
E
The claim becomes causal if the analyst omits the nonsignificant results from the report.
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