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Establishing Causality Is Difficult, Whether Conclusion...

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185 views

Establishing Causality Is Difficult, Whether Conclusion...

Solution

Uploaded by

Anas Jamshed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Business Research Methods


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Establishing causality is difficult, whether conclusions have been derived inductively or


deductively.

(a) Explain and elaborate on the implications of this statement. Snap a photo from your
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(b) Why is ascribing causality more difficult when conclusions have been reached through We'll send you a one-time
induction? download link
(c) Correlation does not imply causation. Illustrate this point with examples from business.
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a. A relationship between variables is latent, but what is manifest are only the possible effects.
A relationship itself can only be theoretically postulated. For instance, a higher income level may
induce the purchase of higher priced cars, and this can be theoretically postulated. Yet the data
focuses on a manifest variable (purchase) rather than the latent psychological processes.

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b. Inductive conclusions, unlike deductive conclusions, have no “necessary” connections


between facts and conclusions. Thus the conclusion of an induction may be simply one
explanation for an observed fact whereas the conclusion of a deduction is theexplanation, if the
deduction’s requirements are met. This means that when dealing with causal relationships we
require other more rigorous devices to assure ourselves that our probabilistic statements contain
the least

possible margin for error. Methods such as experimentation and statistical tests help to improve
our confidence in ascribing cause to inductive conclusions.

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Step 3 of 3

c. There may be a correlation in the following variable pairs found statistically at a point of time,
however there is no causal relationship between the variables; such correlations are said to be
spurious.

 Increases in productivity: Increases in stock offerings to the public

 Decreases in job satisfaction: Decreases in the consumer price index

 A classic example of spurious correlation is exemplified in the fallacious argument:


 All alcoholic beverages contain water; hence an excessive consumption of water leads to
the cirrhosis of the liver.

Chapter 6, Problem 2DQ


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Chapter 6, Problem 2DQ Bookmark Show all steps: ON

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