Question

What is one instance where you have seen correlation misinterpreted as causation? Please describe

Answer 1

One instance in which correlation misinterpreted as causation is the crime rates and the number of people who homeless. These two variables may show a positive correlation and it may be wrongly concluded that the more homeless population in a particular state, the higher is the crime rate. Here homelessness may be misinterpreted as the cause of an increase in crime rates. However, on a closer look, you may find that the economy is in recession due to which people have become unemployed, unable to pay off their mortgages and thus become homeless. As for the crime rate, maybe the state's budget has been slashed due to the recession which has led to a cut down in the police workforce which has led to more crime, due to decreased police presence. Here the underlying cause for both increase in crime rate and homelessness is the economy being in recession, but we may incorrectly misinterpret correlation between rising crime rates and homelessness as causation.

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