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Stylised illustration seen from outside the tea stall on a rainy day, grey-blue sky and slanting rain. Under the awning Viji stands behind his counter between a glass of ginger tea and a stack of biscuit packets. On the left a man in dark green holds a large lever with a red handle. On the right a woman in teal stands calmly holding a single glass of tea. Above the stall a large grey cloud with a faint face has two arrows coming down from it, one pointing at the ginger tea and one at the biscuits, while a third arrow drawn between the tea and the biscuits is crossed out.

Analytics

Correlation and Causation Walk Into a Tea Stall

Ginger tea and biscuits rise and fall together, r = 0.72, and Viji is about to discount ginger tea to sell more biscuits. Correlation is back, a man with a lever walks in behind her, and the person who explains everything has been sitting in the corner the whole time.

Vijayakumar P 11 min read

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