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Explain why determining true cause and effect is difficult and why is it important. Discuss how...

Explain why determining true cause and effect is difficult and why is it important. Discuss how the results of a statistical test can be significant without there being a) an association between the two variales and b) a true cause and effect relationship between two variables.

Math   Statistics-And-Probability   
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Answer #1

Let's consider two variables 1.a country's steel production and 2.population of the country in 20 consecutive years.(easily available on internet)

u will find a very good correlation value for the two variables but does that really signifies that there is a cause effect relationship between them..

the reason behind such a high correlation is both are increasing over time..so there is a third variable time..so if we could eliminate the effect of time we will get actual result.

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