Causality [Simply explained]

In this video i will explain the similarities and differences between correlation, regression and 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 it is immediately assumed to be a causal relationship.

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:

Regression Analysis: An introduction to Linear and Logistic Regression
Simple and Multiple Linear Regression
Assumptions of Linear Regression
Logistic Regression: An Introduction
Dummy Variables in Multiple Regression
Regression with categorical independent variables
Multicollinearity
Causality, Correlation and Regression

[saadiayousouf]

Causality can also be established at the same time by comparative methods. One such method is to compare the variables in the experimental group with the variables in the control group, given the instruments measuring the variables are valid and reliable. While establishing causality over time-lapse may confront confounding variables more often.

[lubababinthhalim]

Hello! I am a litte bit confused about the first example. You say it's easy to see whether there is a causation or not. But I do not understand. Is there a causality? Because it cannot be other way around?

[ankitagrawalgeneral]

Nice explanation. Can you suggest some book to read in details?

[hamidD]

Also Hill's criteria can help with judging causation

[Piovesan]

You are excluding omitted variables (like IQ causes both first sentence and grades)