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Correlation, Causation, Independent Variables, Least Squares

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DQ1:

a) Does correlation equal causation? Does the strength of correlation depend on the direction? What is the meaning of a zero correlation? Explain your answers.

DQ2:

a) What is the difference between an independent and a dependent variable? What is a bivariate or simple regression model? Does a regression model imply causation? Why or why not?

b) Explain the logic of the ordinary least Square (OLS) method? How are the least squares formulas for the slope and intercept derived?

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