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Does correlation imply causation? - Economics

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Question

Does correlation imply causation?

Short Note

Solution

No, correlation does not imply causation. The correlation between the two variables does not imply that one variable causes the other. In other words, cause and effect relationship is not a prerequisite for the correlation. The correlation only measures the degree and intensity of the relationship between the two variables, but surely not the cause and effect relationship between them. 

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Correlation Meaning
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Chapter 7: Correlation - Exercise [Page 105]

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NCERT Statistics for Economics [English]
Chapter 7 Correlation
Exercise | Q 9. | Page 105
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