| This is the oldest, yet often useless, criticism in the world. Statisticians know that when they are observing correlations they don't have statistical evidence for causation. That requires you to take a step back, decide what other variables could cause something, and test for that. But here it's more than some vacuous claim to correlation. Do you get unemployed as a BA first, or do you get your BA? Econometrics is all about identifying causation in correlations in natural data (i.e. you can't run scientific experiments on people's lives, like telling random sample of people to go to college and others to not). Here, you just need intuition to realize that one thing consistently is a prerequisite to another, to realize that it's not just some statistical garbage. There are three possible models to explain the correlation: 1. Something influences both one's propensity to get more education (E) and not get laid off (L). 2. One's education determines one's propensity to not get laid off 3. One's propensity to not get laid off influences one's education. This is nonsense. In a Bayesian network, you can visualize 1. as features f0,...fi (say race, parents' income, etc) influencing both (E) and (L), with (E) also influencing (L) directly. 2. would be a set of features f0,...,fi influencing (E) but not (L), with (E) directly influencing (L). So to conclude, "This chart only shows correlation" is a useless comment to make unless accompanied by an analysis of the possible probabilistic models that the evidence supports. |
Correlation implies causality until proven otherwise? Do you work for the government?
> Statisticians know that when they are observing correlations they don't have statistical evidence for causation.
Scientifically inspired voodoo is still voodoo. Say those with higher education have lower employment, you still don't know why. These people could be wealthier than the rest and have better opportunities in life REGARDLESS of their "education" (as one example). The macro-economist would then cite this data point is proof for needing more spending in higher-education, when in reality, this may not be the case.