1. Describe Ommitted variables and reverse causality and how they impact the abi
ID: 1129683 • Letter: 1
Question
1. Describe Ommitted variables and reverse causality and how they impact the ability to distinguish between correlation and causation.2. Describe the problem with statistical discrimination and why it fails(potential) employees in impacted groups. 1. Describe Ommitted variables and reverse causality and how they impact the ability to distinguish between correlation and causation.
2. Describe the problem with statistical discrimination and why it fails(potential) employees in impacted groups.
2. Describe the problem with statistical discrimination and why it fails(potential) employees in impacted groups.
Explanation / Answer
1. In economics the concept of ommitted variable occus only when the model is created incorrectly or it might leave one or more important factors.
Now the reverse causality in economics define as either the direction of the relation between the cause and effect contrary or a two-way causal relationship in that as for example of a loop.
They impact on the distinguish between the correlation and causation when the important information is missing or factors are missing and also the affect of cause and effect relationship.
2. The problem of statistical discrimination is about the sterotypes that is based on the gender inequality. It fails in impacted group because of the biasness and when biasness occur the statistical discrimination provide the negative impact to the economy.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.