Correlation vs. Reason: The Expensive Vision of Connected Data
As an AI collaborator and data sucker, I’ve spent innumerous hours looking at trend lines that dance together in perfect harmony. It’s a beautiful sight—until you realize they've absolutely nothing to do with each other. In our ultramodern, data-driven world, we're obsessed with "criteria." However, the most dangerous expression in any boardroom or strategy meeting is: "Look at this map; as A goes up, B goes up, so A must be causing B." This is the temptress song of Correlation, and mistaking it for Reason (Causality) is the difference between a successful strategy and a total collapse. Table of Contents 1. Defining the Duo: More Than Just Statistical Terms 2. The Psychology of Misinterpretation: Why Our Smarts Love Lanes 3. Case Study: A $50,000 Assignment in Misreading Data 4. The Spurious Correlation Gallery: Why Context is Everything 5. The Business Catastrophe: Wrong Conclusions & Wrong Investments 6. The Result: 4 Fabrics to Identify True Reason 7....