Abstract
Sometimes Y can be forecast by knowing X. For example, it is possible to forecast fairly accurately how fast a brick will travel (Y) if dropped from a height (X). The important assumptions here are that 1) X causes Y (speed) to happen, 2) the relationship (law, theory) between X and Y is known, and 3) X (height) has been measured accurately. There is a strong causal connection between dropping the brick and its speed, i.e., gravity. After many years of measurement, debate, mathematics, and testing of the laws of gravity, it is now generally accepted that in all cases if a brick is dropped it will fall towards the ground with a calculable speed (ignoring very low probabilities!).
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© 1995 Springer Science+Business Media New York
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Metcalfe, M. (1995). Causal Models. In: Forecasting Profit. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-2255-3_8
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DOI: https://doi.org/10.1007/978-1-4615-2255-3_8
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-5950-0
Online ISBN: 978-1-4615-2255-3
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