Does correlation imply causation?
No, correlation does not imply causation. Correlation measures covariation, not causation. It simply indicates the direction and intensity of the relationship between two variables, but it should never be interpreted as implying a cause and effect relation between them.
For example, there may be a high correlation between the sale of ice-creams and deaths due to drowning. This does not mean eating ice-creams causes drowning. A third variable, temperature, causes both variables to rise simultaneously. Similarly, a positive correlation between the number of doctors and deaths in villages does not mean doctors cause deaths; it may be due to an epidemic. Thus, correlation only signifies association, not causation.
Explanation
The textbook explicitly states that 'Correlation measures covariation, not causation' and warns against interpreting it as cause and effect. The ice-cream and drowning example illustrates how a third variable (temperature) can influence two variables, creating a spurious correlation. The doctor-death example further reinforces that statistical correlation lacks common sense without understanding the underlying context.