Correlation or Causality: New Evidence from Cross-Sectional Statistical Analysis of Auto-Crash Data in Nigeria

by Olushina Olawale Awe.

Abstract: Correlation Analysis is a key statistical technique for detecting the extent of relationship that exists among variables of interest in any environment and in various fields of human endeavor ranging from science, social sciences arts and even engineering and technology. This study is aimed at investigating the extent of association among some cross sectional, categorical, auto-crash variables in Nigeria. Differences between causation and correlation are re-examined. In all analyses, we find that all four variables considered are highly correlated. However, we note that correlation is not tantamount to causality. Finally, we compute the statistic of the coefficients of determination which is further used to determine the proportion of variation of one variable that is attributable to the variance in a related variable.

Key Words: Correlation, Classical Regression Models, Coefficient of Determination, Causality

Olushina Olawale Awe,

Editor: R.G. Graf,

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