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Suppose you believe that two variables X and Y are related, but you have no idea which way the causality goes.

Does X cause Y or vice versa (or maybe even neither)?

Can you tell by regressing Y on X and then regressing X on Y? Explain.

Also, provide at least one real example where the direction of causality would be ambiguous.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M91923359

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