What does this correlation tell you? 

In this post, you will be challenged to look at how statistical tests, such as correlation are commonly used and the possible limitations of such analyses. In addition, you will need to identify the appropriate application of course-specified statistical tests, examine assumptions and limitations of course specified statistical tests, and communicate in writing critiques of statistical tests.

Much has been written about the relationship between students’ SAT test scores and their family’s income.  Generally speaking, there is a strong positive correlation between income and SAT scores.  Consider and discuss the following questions as you respond:

• What does this correlation tell you?
• Is this correlation evidence that having a high family income causes one to have high SAT scores?
• Is this correlation evidence that high SAT scores are a cause of higher income?  Or, does this tell you something else?  Explain your answer.
• Explain why correlation alone is rarely sufficient to demonstrate cause.