Cause-and-effect direction between X and Y may be determined by running the regression twice and seeing whether Y = β₀ + β₁X or X = β₁ + β₀Y has the larger R².

Question

Quizplus · Accepted Answer

Running the regression twice and comparing the R² values does not determine the cause-and-effect direction between X and Y as correlation does not imply causation. Other methods like experimental manipulation or causal inference techniques like instrumental variable analysis must be used to establish the causal direction.

Cause-And-Effect Direction Between X and Y May Be Determined by Running