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  • August 2015 (Revised January 2017)
  • Technical Note
  • HBS Case Collection

From Correlation to Causation

By: Feng Zhu and Karim R. Lakhani
  • Format:Print
  • | Language:English
  • | Pages:7
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Abstract

To make sound business decisions, managers must be comfortable with the concepts of correlation and causation. This background note provides an overview of correlation and causation using examples and explains why the former does not imply the latter. It also describes several methods for gaining insights into causal relations, including randomized experiments, panel data, matching, and regression discontinuity. The note is intended for a general audience and does not require advanced statistics knowledge.

Keywords

Statistics; Regression; Data Analytics; Decisions; Forecasting and Prediction; Judgments

Citation

Zhu, Feng, and Karim R. Lakhani. "From Correlation to Causation." Harvard Business School Technical Note 616-009, August 2015. (Revised January 2017.)
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About The Authors

Feng Zhu

Technology and Operations Management
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Karim R. Lakhani

Technology and Operations Management
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Related Work

    • August 2015 (Revised January 2017)
    • Faculty Research

    From Correlation to Causation

    By: Feng Zhu and Karim R. Lakhani
Related Work
  • From Correlation to Causation By: Feng Zhu and Karim R. Lakhani
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