Causeandeffect direction between X and Y may be determined b

Cause-and-effect direction between X and Y may be determined by running the regression twice and seeing whether Y = 0 + 1X or X = 1 + 0Y has the larger R2.

True

or

False

Solution

False, regression only explains linear relation and not cause-affect. The R-square wil be same for both.

Cause-and-effect direction between X and Y may be determined by running the regression twice and seeing whether Y = 0 + 1X or X = 1 + 0Y has the larger R2. True

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