It is sometimes said that the higher the correlation between

It is sometimes said that the higher the correlation between two variables, the more likely the relationship is causal. Do you think this is correct? Discuss.

Solution

Yes.

Note that the coefficient of determination is r^2, which increases as the absolute value of the correlation increases.

Note that the practical interpretation of r^2 is that it is the percentage of the variation being explained by the independent variable. So, if it is very close to 1, then it explains almost all of the variation. That\'s why some people say that the higher the correlation between two variables, the more likely the relationship is causal.