Qm

Nonsense correlation between two trending series

Someone points out that a country's annual cheese consumption and the number of engineering degrees awarded are correlated at nearly 0.95, and claims one drives the other. Both series simply rise steadily year after year.

Explain why the correlation is so high and how to correct the analysis.

Your answer

Solving needs a free account

Answers, streaks and solutions unlock when you are signed in. Reading the question and the hint stays free.

Discussion

Sign in to join the discussion · reading is open to everyone

💡 Discussion rules

  1. No full solutions here. Hints and approaches only.
  2. Complexity, edge cases and intuition are the point.
  3. Interview experiences are welcome. Respect your NDAs.

Loading discussion…

Learn the concepts

The theory behind this question.

Related questions

Two random walks with R² of 0.9 and no relationshipWhy two random walks give a spurious regressionThe Durbin-Watson clue in a spurious regressionFixing a spurious regression by differencingWhen a levels regression of I(1) series is not spurious
All questions →