Tell by regressing y on x and then regressing x on y


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.

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: Tell by regressing y on x and then regressing x on y
Reference No:- TGS01551208

Expected delivery within 24 Hours