What’s So Funny About Correlation? Cartoon from xkcd.com What is Correlation? • When two things go together: • cookies & milk • macaroni & cheese • peanut butter & jelly What is Statistical Correlation? • A mutual relationship between two variable quantities. • Correlation coefficients measure how closely related the two variables are. Correlation Coefficient Strength 1 Perfect Positive 0.7 to 0.9 Strong Positive 0.4 to 0.6 Moderate Positive 0.1 to 0.3 Weak Positive 0 No Correlation -0.1 to -0.3 Weak Negative -0.4 to -0.6 Moderate Negative -0.7 to -0.9 Strong Negative -1 Perfect Negative Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate? Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate? Year Uranium Power 1996 66.1 674.7 1984 160.2 327.6 1997 65.9 628.6 1985 153.2 383.7 1998 65.8 673.7 1986 144.1 414 1999 58.3 728.3 1987 137.8 455.3 2000 54.8 753.9 1988 125.5 527 2001 55.6 768.8 1989 115.8 529.4 2002 53.5 780.1 1990 102.7 576.9 2003 45.6 763.7 1991 98 612.6 2004 57.7 788.5 1992 92.1 618.8 2005 64.7 782 1993 81.2 610.3 2006 77.5 787.2 1994 65.4 640.4 2007 81.2 806.4 1995 58.7 673.4 2008 81.9 806.2 Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate? Graph from www.tylervigen.com Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate? Uranium Stored vs Power Generated 900 800 700 Power Generated 600 500 400 300 200 100 0 0 20 40 60 80 100 Uranium Stored 120 140 160 180 Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate? Uranium Stored vs Power Generated 900 800 700 Power Generated 600 500 400 300 200 100 0 0 20 40 60 80 100 Uranium Stored 120 140 160 180 Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate? Does the amount of uranium stored at nuclear plants correlate with the amount of power they generate? -0.89905 Why might the amount of uranium stored at nuclear plants correlate with the amount of power they generate? What is Causation? What is Causation? • The action of causing something; the relationship between cause and effect. • Smoking causes cancer • Sugar causes cavities • Gravity causes objects to fall How does per capita consumption of chicken correlate with crude oil imports? How does per capita consumption of chicken correlate with crude oil imports? Graph from www.tylervigen.com How does per capita consumption of chicken correlate with crude oil imports? Year Per capita chicken consumption (lbs.) Total crude oil imports (millions of barrels) 2000 54.2 3311 2001 54 3405 2002 56.8 3336 2003 57.5 3521 2004 59.3 3674 2005 60.5 3670 2006 60.9 3685 2007 59.9 3656 2008 58.7 3571 2009 56 3307 Chicken data from USDA. Oil data from Dept. of Energy. How does per capita consumption of chicken correlate with crude oil imports? 0.9 How does per capita consumption of chicken correlate with crude oil imports? Chicken Consumption vs. Crude Oil Imports 3750 3700 3650 3600 Oil 3550 3500 3450 3400 3350 3300 3250 53 54 55 56 57 58 Chicken 59 60 61 62 How does per capita consumption of chicken correlate with crude oil imports? Chicken Consumption vs. Crude Oil Imports 3750 3700 3650 3600 Oil 3550 3500 3450 3400 3350 3300 3250 53 54 55 56 57 58 Chicken 59 60 61 62 Does eating more chicken cause crude oil imports to increase? ? Correlation and Causation • Correlation is a measure of how well data fit the relationship. • A correlated relationship between two quantitative variables is not the same as a causal relationship. • The determination that one thing causes another requires a controlled randomized experiment. • "Correlation is not causation, but it sure is a hint.“ - Edward Tufte, American Statistician What’s So Funny About Correlation? Cartoon from xkcd.com