Question

A grocery store collected sales data. It found that when customers buy less bread, they tend to purchase more rice. What can we conclude?

Answer 1

There is a correlation between amount of bread bought and amount of rice purchased. However, there is no causation. This is because there is an increase in the amount of rice purchased with a decrease in the amount of bread bought.

Explanation:

We see that there is a correlation between the amount of bread and the amount of rice bought .

When the bread is bought the amount of rice drops and when the amount of bread is decreased the amount of rice increases.

There is no causation meaning there is no direct affect of buying more bread or rice.Buying of rice does not directly cause the purchase of bread.

Hence there is correlation but not causation.

Correlation and causation can occur at the same time when one event causes the other.