# Cause and effect relationship validity of data

### Establishing Cause and Effect - Scientific Causality

The three criteria for establishing cause and effect – association, time ordering ( or A central goal of most research is the identification of causal relationships, procedures whenever possible), careful data collection and use of statistical. Experiments are the most popular primary data collection methods in studies with The presence of cause cause-and-effect relationships can be confirmed only if with greater levels of internal validity due to systematic selection of subjects. How do we establish a cause-effect (causal) relationship? Just go look at the threats to internal validity (see single group threats, multiple group threats or.

In Probability and Finance: I cannot go further into the argument of the book here, but I do want to emphasize one of its consequences: Other probabilities, those not close to zero or one, may not be preserved and hence cannot claim the causal status. A simple example may serve to explain this point. Consider the following hypothetical claim from a software vendor: Despite that, the increase in sales for a particular customer cannot should not!

## Establishing Cause & Effect

Well, for the following reasons: The particular customer may differ in important ways from those used in estimating the probability. This is a manifestation of the reference class problem.

Most statistical studies of the kind used in marketing or management studies are enumerative, not analytical — i. Therefore it is incorrect to attribute the outcome to a single factor such as farsighted managerial action. She uses the somewhat dated and therefore incorrect example of the relationship between smoking and heart disease.

### Cause and Effect - SAGE Research Methods

But this fact may not show up in the probabilities if other causes are at work. Background correlations between the purported cause and other causal factors may conceal the increase in probability which would otherwise appear.

A simple example will illustrate.

It is generally supposed that smoking causes heart disease. This expectation is mistaken, however. Even if it is true that smoking causes heart disease, the expected increase in probability will not appear if smoking is correlated with a sufficiently strong preventative, say exercising. To see why this is so, imagine that exercising is more effective at preventing heart disease than smoking at causing it.

For the population of smokers also contains a good many exercisers, and when the two are in combination, the exercising tends to dominate…. In the case of strategic outcomes, it is impossible to know all the factors involved. Moreover, the factors are often interdependent and subject to positive feedback see my previous post for more on this. Conclusions The implications of the above can be summarised as follows: That said, it is only natural to claim responsibility for desirable outcomes and shift the blame for undesirable ones, as it is to seek simplistic solutions to difficult organisational problems.

### Social Research Methods - Knowledge Base - Establishing Cause & Effect

Hence the insatiable market for management snake oil. Temporal Precedence First, you have to be able to show that your cause happened before your effect. Of course my cause has to happen before the effect. Did you ever hear of an effect happening before its cause?

Before we get lost in the logic here, consider a classic example from economics: It certainly seems plausible that as inflation increases, more employers find that in order to meet costs they have to lay off employees. So it seems that inflation could, at least partially, be a cause for unemployment.

But both inflation and employment rates are occurring together on an ongoing basis. Is it possible that fluctuations in employment can affect inflation?

If we have an increase in the work force i. So which is the cause and which the effect, inflation or unemployment? It turns out that in this kind of cyclical situation involving ongoing processes that interact that both may cause and, in turn, be affected by the other.

This makes it very hard to establish a causal relationship in this situation. Covariation of the Cause and Effect What does this mean?

## Establishing Cause and Effect

Before you can show that you have a causal relationship you have to show that you have some type of relationship. For instance, consider the syllogism: I don't know about you, but sometimes I find it's not easy to think about X's and Y's.

Let's put this same syllogism in program evaluation terms: This provides evidence that the program and outcome are related. Notice, however, that this syllogism doesn't not provide evidence that the program caused the outcome -- perhaps there was some other factor present with the program that caused the outcome, rather than the program.

The relationships described so far are rather simple binary relationships. Sometimes we want to know whether different amounts of the program lead to different amounts of the outcome -- a continuous relationship: