Plotting Data

Plotting Data

Lurking Variables

Suppose there is a high positive correlation between the number of fire fighters sent to a fire and the amount of damage done. Does this mean that the fire fighters caused the damage? Or is it more likely that the bigger the fire, the more fire fighters were sent and the more damage that is done. In this example, there is another variable - the size of the fire. This other variable is the causal variable, correlating the number of fire fighters sent and the amount of damage done. This other variable is a " lurking variable ;" something that affects the outcome but was not included as one of the two variables or one that you may not have been aware of.