Which statement is NOT true about correlation and causality? Omitted variable bi

Question

Which statement is NOT true about correlation and causality?

Omitted variable bias is describing the situation where other variable(s) may cause the seemingly high correlation between X and Y

Time order (e.g., X takes place before Y) won’t help establish causality between X and Y

Reverse causality could lead to high correlation between X and Y

Doing randomized experiment could help establish causality between X and Y

Omitted variable bias is describing the situation where other variable(s) may cause the seemingly high correlation between X and Y

Time order (e.g., X takes place before Y) won’t help establish causality between X and Y

Reverse causality could lead to high correlation between X and Y

Doing randomized experiment could help establish causality between X and Y

Explanation / Answer

Ans:

Correct option is:

Time order (e.g., X takes place before Y) won’t help establish causality between X and Y

(Time order,variation in X precedes variation in Y i.e.cause has to precede effect)

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