Suppose you believe that two variables X and Y are related, but you have no idea which

Question:

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.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Analytics Data Analysis and Decision Making

ISBN: 978-1305947542

6th edition

Authors: S. Christian Albright, Wayne L. Winston

Question Posted: