Title 6.3. What We Can Do with Causal Diagram.pdf ✅

pacmann.io © 2022 – Pacmann AI 27 Identification ● What we can do with causal diagram? Identifying Variation ○ To identify the answer to the research question, we must examine the variation related to: ■ Tech causing IP spend ■ IP spend causing profit ■ Tech causing IP spend, which then affects profit. ○ We aim to isolate other channels to identify the causal effect of IP spend on profit
pacmann.io © 2022 – Pacmann AI 28 Identification How to do that? ● Identifying just one of those arrows that representing the relationship between IP spend and profit, and assess its effect. ● If we shut down other arrows, Only one channel of variation left, and it is very likely to be the causal effect you want to identify