Question

This is 2 questions...

Q1. - In regression analysis the aim is to test the causal relationship between the Y and the Xs by stating the alternate hypotheses and interpreting the p-values of the Xs.

True or False?

Q2. - The higher the alpha, the lower the p-value. Hence if alpha = 99%, the p-value which points to the significance of the independent variables over Y needs to be less than or equal to 0.01.

True or False?

Answer 1

Ans:

1)

False

Regression deals with dependence among variables within a model. But it cannot always imply causation. For example, we stated above that rainfall affects crop yield and there is data that support this. However, this is a one-way relationship: crop yield cannot affect rainfall. It means there is no cause and effect reaction on regression if there is no causation.

In short, we conclude that a statistical relationship does not imply causation

2)

False

The P value, or calculated probability, is the probability of finding the observed, or more extreme, results when the null hypothesis (H ₀) of a study question is true , the definition of 'extreme' depends on how the hypothesis is being tested.