Business Analytics · Intermediate level

Intermediate level · Module 5 of 6 · 15 guided hours

Testing Changes and Causal Thinking

Judge whether a change caused an improvement, using fair comparisons and simple tests.

Learning objectives

  • Distinguish correlation from causation
  • Design simple before-after and comparison-group tests
  • Interpret test results with appropriate caution

Topics

  • correlation and causation
  • confounding factors
  • before-after comparisons
  • comparison groups
  • pilot tests
  • sample size and noise

Lessons

  1. Lesson 1 Correlation, Causation and Confounders

    Avoid concluding that one thing caused another just because they moved together.

    correlationcausationconfounderreverse causation

  2. Lesson 2 Designing Fair Tests

    Design pilots that can show whether a change works.

    before-aftercomparison grouprandom assignmentpilot

  3. Lesson 3 Interpreting Test Results

    Read pilot results with care, considering noise, size and practical importance.

    difference between groupsnoisesample sizepractical significance

Practical activity

Design a pilot to test whether SMS reminders increase repeat purchases or clinic attendance, and analyse provided pilot results.

Expected outcomes

  • Sound judgement about what caused results
  • Practical test designs

Assessment

Test design and analysis marked on fairness, logic and caution in conclusions.

Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.