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.
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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