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Peak Theory of Oil/Rock

Confusing Correlation with Causation

         

weeks

4:33 pm on Nov 13, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



I'm linking this to someone who links to the original.
[ritholtz.com...]

This is funny, but it's also an important point. We have a lot of data from our email and web site systems about response. But, I'm finding that it is easily to be confused about what it is saying. Some of the "ah ha" moments I've had with clients are not "ah ha" at all.

The chart here, which indicates either "the lack of really good modern rock songs recently is causing oil production to falter, or conversely, why peak oil has given us Boy Bands, Madonna, and Clearchannel Radio," is useful in making this point.

swa66

5:25 pm on Nov 13, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



As the author of that blog entry said: "the folly of Confusing Correlation with Causation"

Statistics can show correlation, but you cannot deduce a causal link from the statistics alone. Common mistake for kindergarten statisticians.