Example 1: Causal Analysis with a Synthetic Dataset

Objective: Explore the causal relationship between the number of study hours and exam scores using a synthetic dataset.

Step 1: Import Necessary Libraries

Python3




import numpy as np
import pandas as pd
import matplotlib.pyplot as plt
import seaborn as sns
from sklearn.model_selection import train_test_split
from sklearn.linear_model import LinearRegression


Step 2: Create a Synthetic Dataset

Python3




np.random.seed(42)
study_hours = np.random.normal(30, 10, 100)
exam_scores = 50 + 2 * study_hours + np.random.normal(0, 20, 100)
data = pd.DataFrame({'Study_Hours': study_hours, 'Exam_Scores': exam_scores})


Step 3: Visualize the Data

Python3




plt.scatter(data['Study_Hours'], data['Exam_Scores'])
plt.title('Synthetic Dataset: Study Hours vs. Exam Scores')
plt.xlabel('Study Hours')
plt.ylabel('Exam Scores')
plt.show()


Output:

Explanation: This scatter plot visually represents our synthetic dataset, where the x-axis shows study hours, and the y-axis shows exam scores. We can observe a positive trend, suggesting a potential correlation.

Step 4: Split the Dataset

Python3




X_train, X_test, y_train, y_test = train_test_split(data[['Study_Hours']], data['Exam_Scores'], test_size=0.2, random_state=42)


Explanation: Splitting the dataset into training and testing sets allows us to train our model on one subset and evaluate its performance on another, ensuring unbiased results.

Step 5: Train a Linear Regression Model

Python3




model = LinearRegression()
model.fit(X_train, y_train)


Output:

Linear Regression

Explanation: Linear regression is chosen to model the relationship between study hours and exam scores. Training the model involves finding the best-fit line that minimizes the difference between predicted and actual exam scores.

Step 6: Visualize the Regression Line

Python3




plt.scatter(X_test, y_test)
plt.plot(X_test, model.predict(X_test), color='red', linewidth=2)
plt.title('Linear Regression: Study Hours vs. Exam Scores')
plt.xlabel('Study Hours')
plt.ylabel('Exam Scores')
plt.show()


Output:

Explanation: The red line represents the regression model’s prediction. This line summarizes the relationship between study hours and exam scores, showcasing the model’s ability to generalize.

How to perform Causal Analysis?

Causal analysis is a powerful technique that can help you understand why something happens and how to prevent or improve it, in other words, it helps us understand the relationships between different events or variables. Causal analysis can offer insightful information when doing research, fixing issues, or making judgments.

In this article, we’ll break down the concept of causal analysis, step by step, catering to beginners who are new to this intriguing field.

Table of Content

  • What is Causal Analysis?
  • How to Perform Causal Analysis?
  • Steps to Perform Casual Analysis
  • What are the Benefits of Causal Analysis?
  • Example Case of Causal Analysis
  • Example 1: Causal Analysis with a Synthetic Dataset
  • Example 2: Propensity Score Matching
  • Example3: using CasualPY(Public)
  • Tips for Performing Causal Analysis

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What is Causal Analysis?

Causal analysis is the process of identifying and addressing the causes and effects of a phenomenon, problem, or event. It is about figuring out how one variable (the cause) affects or determines another variable (the effect), as well as recognizing the relationships between various occurrences and how changes in one variable might affect another. For example, smoking causes lung cancer, or increasing the price of a product reduces its demand. To get useful conclusions from data, this technique is frequently applied in disciplines including science, economics, and medicine. Causal analysis can help you answer questions such as:...

How to Perform Causal Analysis?

Depending on the type of causal analysis, the data, and the research topic, there may be differences in the processes involved in doing the analysis. However, a general framework that you can follow is:...

Steps to Perform Casual Analysis

Define the Problem: Begin by clearly defining the problem or issue you want to analyze causally. This step sets the foundation for the entire process. Identify Variables: Break down the problem into different variables. Variables are factors that can change or be changed. For example, if you’re investigating the reasons for low productivity, variables could include workload, employee satisfaction, and work environment. Collect Data: Gather relevant data for each variable. This can involve surveys, experiments, observations, or even analyzing existing data sets. Make sure your data is accurate and comprehensive. Establish Relationships: Determine how the variables are related to each other. Use statistical methods or visual tools like graphs and charts to identify patterns and correlations. Distinguish Correlation from Causation: It is important to realize that correlation does not equal causation. A correlation between two variables does not imply that one causes the other. It is necessary to comprehend the fundamental mechanisms of causation in more detail. Consider Confounding Variables: Recognize confounding variables, which are elements that may affect the observed connection between variables and skew findings. Precise causal analysis requires accounting for these factors....

What are the Benefits of Causal Analysis?

There are several advantages to using causal analysis, including:...

Example Case of Causal Analysis

Here are some examples of causal analysis that you can refer to:...

Example 1: Causal Analysis with a Synthetic Dataset

Objective: Explore the causal relationship between the number of study hours and exam scores using a synthetic dataset....

Example 2: Propensity Score Matching

...

Example3: using CasualPY(Public)

...

Tips for Performing Causal Analysis

...

FAQs on Casual Analysis

...

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