Causality Correlation and Regression











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This video will explain you the commonalities and differences between the correlation, regression and the causality. • Causality means that there is a clear cause-effect relationship between two variables. • A common mistake in the interpretation of statistics is that when a correlation exists a causality is inferred. • There are two prerequisites for causality: • First, there is a significant relationship, that is, a Significant Correlation. • The second condition can be satisfied in two ways. • First, it is satisfied if there is a temporal ordering of the variables. So variable A was collected temporally before variable B. • Furthermore, the second condition can be fulfilled, if there is a theoretically founded and plausible theory in which direction the causal relationship goes. • If neither of the two is true, i.e. there is neither a temporal order nor can the causality be justified by a well-founded theory, then we can only speak of a relationship, but never of causality, i.e. it cannot be said that variable A influences variable B or vice versa. • More Information about Causality: • https://datatab.net/tutorial/causality • Regression Analysis: An introduction to Linear and Logistic Regression •    • Regression Analysis: An introduction ...   • Simple and Multiple Linear Regression •    • Simple and Multiple Linear Regression   • Assumptions of Linear Regression •    • Assumptions of Linear Regression   • Logistic Regression: An Introduction •    • Logistic Regression: An Introduction   • Dummy Variables in Multiple Regression •    • Dummy Variables in Multiple Regression   • Regression with categorical independent variables •    • Regression with categorical independe...   • Multicollinearity •    • Multicollinearity (in Regression Anal...   • Causality, Correlation and Regression •    • Causality, Correlation and Regression  

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