Problem
Scenario
You are reviewing product usage data and notice that customers who use more features also tend to renew at higher rates. A stakeholder wants to treat that relationship as proof that feature usage drives renewal.
Question
How would you explain the difference between correlation and causation in a business context?
What This Tests
- Recognizing correlation in observational business data
- Explaining confounding in plain language
- Using regression as an adjustment tool, not automatic proof of causality
- Knowing when experiments are needed
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