Causal Analytics
 
 

Types of Causal Relationships
There are a variety of "causal relationships" or situations that appear to be cause-and-effect.  Here's the four most common ones:
 


A truly drives B.  Every time that A moves, so will B.  This is a true cause and effect relationship.


A drives both B and C, but A is hidden (not in the data), so B appears to cause C.  This is a false causal relationship that can be a challenge to discern from pure data analytics. It can be seen only if B is independently moved either in the data or through a test.  In those cases, it will be seen that C does not actually respond to B.


A drives B and D drives C.  If both A and D are hidden, there may be times that B appears to influence C.  However, this is easier to deduce because the B-to-C relationship will be infrequent and/or inconsistent.


A drives B and in turn B drives A.  This type of feedback loop is seen frequently.  For example, an operator changes the temperature of a manufacturing process (A), which changes the product characteristics (B).  The operator sees these characteristics and then decides to change the temperature again (A).

These are simple examples.  In typical applications, different causal relationships are combined into more complex systems.  The challenge is to identify and quantify these relations to use them to our advantage.  There are a number of useful analytical methods to do this.
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