Correlation Statistics Example 4

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Example 4

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A scatter plot shows that as outside temperature increases, hot chocolate sales decrease. Describe the correlation and explain why this pattern does not by itself prove temperature is the only cause.

Solution

  1. 1
    Step 1: As one variable increases while the other decreases, the relationship is a negative correlation.
  2. 2
    Step 2: Correlation alone does not prove causation because other factors such as promotions, holidays, or store traffic could also affect sales.

Answer

Negative correlation. The pattern does not prove temperature is the only cause because other variables may also influence sales.
Correlation describes association, not proof of cause. Real-world data often includes lurking variables, so we need more than a pattern in a scatter plot to claim causation.

About Correlation

Correlation is a statistical relationship between two variables where changes in one are associated with changes in the other. Positive correlation means both increase together; negative correlation means one increases as the other decreases; no correlation means no consistent pattern.

Learn more about Correlation โ†’

More Correlation Examples