Confounding — The Central Villain of Causal Inference
If you remember one thing about why causal conclusions go wrong, make it confounding. A confounder is a lurking variable that influences both the treatment and the outcome, manufacturing a correlation that looks causal but isn't. It's the reason observational data is so treacherous, the reason randomized experiments are the gold standard, and the single concept that explains most spurious causal claims in business, science, and ML. This post makes confounding concrete and shows why it's so hard to defeat.
A confounder influences both the treatment and the outcome, manufacturing a correlation that looks causal but isn't — the reason observational data is treacherous and experiments are the gold standard. Why it produces confident wrong conclusions, why unmeasured confounders are the nightmare, and how the field fights it.