Correlation vs Causation in Betting Data

Correlation vs Causation in Betting Data

Players with more minutes score more points, but that does not tell you why. Correlation vs causation is the gap where many bad betting ideas begin. This lesson explains what a regression line says, using points = 4 + 0.5 x minutes, and what it does not say about any one player. You see three stories that could explain two numbers moving together, including a confounder like being the team's best player. You also learn about leakage, the time-travel mistake of using information you would not have had before the game, and why honest testing needs a cutoff. Then you run a small prediction by hand, so the idea sticks.

Learning objectives

You will learn what a regression line says and what it does not, why two numbers can move together without one causing the other, and how to spot hidden factors and time-travel mistakes in betting data. You will also run a small prediction by hand.

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