Definition
Causation is a relationship in which a change in one phenomenon actually produces a change in another.
Human Explanation
One event is a genuine cause of another rather than merely occurring alongside it.
Why it Matters
Sound decisions require a distinction between coincidental association and a genuine cause-and-effect relationship.
Conceptual Boundary
Causation cannot be confirmed from correlation alone. It requires appropriate evidence, a credible causal mechanism and analysis capable of excluding plausible alternative explanations.
Practical Perspective
In business and industrial analysis, treating correlation as causation often directs action towards the wrong factor. The strength of a causal conclusion must not exceed the strength of the evidence.