3. Statistical Methods

Causal Inference — Quiz

Test your understanding of causal inference with 5 practice questions.

Practice Questions

Question 1

Which of the following methods is most effective in controlling for unobserved confounding variables in a causal inference study?

Question 2

In an A/B test, if the $p$-value for the difference in conversion rates between Group A and Group B is $0.03$, and the significance level ($\alpha$) is set at $0.05$, what is the appropriate conclusion?

Question 3

A business wants to determine the causal effect of a new customer loyalty program on customer lifetime value (CLV). They launch the program in one region while keeping the old program in another similar region. What is the primary limitation of this approach compared to a randomized A/B test?

Question 4

Which of the following scenarios best illustrates a situation where reverse causality might be a concern in business analytics?

Question 5

To establish a valid cause-and-effect relationship, which of the following conditions is least important?