Exercise

Reversing Causal Direction

Causal interpretation of regression models can be tricky. Using the same data in the last example, an eGulf analyst decided to toy with a regression model where age is a function of price sold (i.e. price is the independent variable, and age is the dependent variable). The results of this model are visualized in the R workspace. If this model shows a causal relationship between age and price sold, with age as the dependent variable, what exactly should the analyst say to describe the results to his boss?

Instructions

50 XP

Possible Answers

Older phones tend to sell for less
Old age causes phones to sell for less
High sales prices causes phones to become younger