Concept tag
#correlation
-
A correlation explains nothing until someone shows the mechanism
I build credit-scoring models for a mobile-money company. Our data say that people who charge their phones at regular times are more likely to repay small loans. The effect is real, stable and useful for prediction. But when a manager says this…
Started by Wanjiru Kamau6 replies228 views -
Correlation is not causation, I tell my team. But what exactly is the missing ingredient?
I build credit-scoring models for a mobile-money company in Nairobi. Our models find patterns: people who top up airtime at regular times repay loans more often. Everyone on my team can recite "correlation is not causation". Nobody can say what causation adds.…
Started by Wanjiru Kamau4 replies146 views