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Table Of Contents
Causal Inference with Bayesian Networks
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In this section, we introduce a causal model that serves as a generative data model for generating a synthetic dataset, which we use throughout the remainder of this chapter. The causal model is designed to simulate use case causal effect relations with heterogeneous effects. Following this, we will explain the steps for implementing the causal model using Python. Afterward, we will engage you in a practice session using Python, where we provide a walkthrough of the steps to generate a synthetic dataset with heterogeneous treatment effects and to analyze the dataset’s statistical properties to illustrate the heterogeneity of the simulated causal effects represented by the dataset.
We previously mentioned the missing data problem, which is the core issue in causal inference with observational data. The gist of the problem is that the actual individual treatment effects are never directly...