What is a key limitation of using correlation in research?

Prepare for UofT's PSY201 Statistics I Midterm. Study with detailed flashcards and multiple choice questions, each complete with hints and explanations. Ace your exam!

The key limitation of using correlation in research is that correlation does not imply causation. This means that while two variables may show a statistical relationship, it does not mean that one variable causes the changes in the other. Correlation can indicate a connection or association, but it does not provide evidence of a direct cause-and-effect relationship. For instance, if data shows that taller individuals tend to earn more money, this does not mean that being tall causes higher income, as other factors, such as education or socioeconomic background, may contribute to both height and income.

Recognizing this limitation is crucial in statistical analysis because misinterpreting correlation as causation can lead to incorrect conclusions and poor decision-making in both research and applied contexts. This understanding emphasizes the importance of conducting further studies, such as experiments or longitudinal studies, to explore causal relationships more accurately.

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