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Stop Confusing Correlation with Causation

Blog: Decision Management Community

Harvard Business Review under the section “Organizational Decision Making” published the article “Leaders: Stop Confusing Correlation with Causation“. It explains how we could eliminate many problems and tons of noise just by recognizing that correlation is not causation. Link

Quote: A large body of research in behavioral economics and psychology has highlighted systematic mistakes we can make when looking at data. We tend to seek evidence that confirms our preconceived notions and ignore data that might go against our hypotheses. We neglect important aspects of the way that data was generated. More broadly, it’s easy to focus on the data in front of you, even when the most important data is missing. As Nobel Laureate Daniel Kahneman has said, it can be as if “what you see is all there is.”

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