Does a high value of imply that two variables are causally r

Does a high value of imply that two variables are causally related? Explain.

Solution

A high value of r^2 means the dependent variable ( y) is explained by the independent variable ( x).

For example, an r^2 of 98% implies 98% of y is explained by x.

A causal relation between two variables X and Y exists if the occurrence of the first causes the other. The first variable is called the cause and the second is called the effect. Thus, correlation between two variables does not imply causation.