Causal relationship definition
/What is a Causal Relationship?
A causal relationship exists when one variable in a data set has a direct influence on another variable. Thus, one event triggers the occurrence of another event. A causal relationship is also referred to as cause and effect.
Examples of Causal Relationships
There are many examples of causal relationships in business. Here are several to consider:
There is a causal relationship between increased advertising expenditures and increased sales
There is a causal relationship between spending more time vetting new hire candidates and a decline in in-house fraud
There is a causal relationship between spending more money vetting supplier quality levels and a decline in product warranty claims by customers