Correlation vs. Causation: The Toaster Method and Goldberger's Studies, Summaries of Business Statistics

The relationship between correlation and causation through two case studies: the toasters & birth control study and goldberger's research on pellagra. The importance of understanding the nature of the relationship between variables and the potential influence of third variables or selection bias.

Typology: Summaries

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11/5/2012
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Chapter 5
Correlation and Causation:
Birth Control by the Toaster Method
Toasters & Birth Control
Study of factors related to the use of contraceptives
Collected data on a wide range of behavioral and environmental
variables
Variable most strongly related to contraceptive use was the
number of electrical appliances in the home.
So . . . Should we start passing out free toasters in high schools?
No, because. . .
It is not the strength but the nature of the
relationship that is relevant.
Although there is correlation, toasters don’t cause
people to use contraceptives.
Two variables may be associated without having a
causal relationship.
There may be a mediating variable/third variable
involved. (In this case Socioeconomic Status)
The Third Variable Problem:
Goldberger and Pellagra
1990s disease in the South
Evidence pointed towards causal relationship of inside
plumbing/good sewarage vs. bad sewarage
Goldberger thought the correlation to came to be, because families
with good plumbing were likely to be economically advantaged.
He thought their economic status could be reflected in their diets
His causal inference was a poor/low protein diet let to Pellagra
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Chapter 5

Correlation and Causation:

Birth Control by the Toaster Method

Toasters & Birth Control

  • Study of factors related to the use of contraceptives
  • Collected data on a wide range of behavioral and environmental variables
  • Variable most strongly related to contraceptive use was the number of electrical appliances in the home.
  • So... Should we start passing out free toasters in high schools?

No, because...

  • It is not the strength but the nature of the relationship that is relevant.
  • Although there is correlation, toasters don’t cause people to use contraceptives.
  • Two variables may be associated without having a causal relationship.
  • There may be a mediating variable/third variable involved. (In this case Socioeconomic Status)

The Third Variable Problem:

Goldberger and Pellagra

  • 1990s disease in the South
  • Evidence pointed towards causal relationship of inside plumbing/good sewarage vs. bad sewarage
  • Goldberger thought the correlation to came to be, because families with good plumbing were likely to be economically advantaged.
  • He thought their economic status could be reflected in their diets
  • His causal inference was a poor/low protein diet let to Pellagra

Goldberger’s Tests

  • To prove Pellagra was not contagious and not transmitted through bodily fluids (like the bad sewarage claim)
  • Goldberger, his assistants and his wife ate victims of Pellagra’s feces and urine
  • Goldberger was injected with victims of Pellagra’s blood
  • Inserted their nose and throat secretions into his mouth.
  • None of them got Pellagra, backing his claim.

Goldberger’s Tests

  • He then tested his own causal mechanism.
  • One group given high carbohydrate, low protein diet
    • Pellagra occurred
  • One group given balanced diet
    • No Pellagra present

Why was Goldberger’s

Causal Inference better?

  • Controlled manipulation Instead of the investigator observing correlations they actually manipulate the critical variable.
  • Goldberger created the conditions necessary for the infectious transmission of the disease, and nothing happened.
  • He considered that even though there was a correlation with the first causal information there wasn’t enough evidence to back it up so he tested a third related variable.

Spurious Correlations

“Correlations that arise not because a causal link exists between the two variables that are measured, but because both variables are related to a third variable.”