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Table Of Contents
Causal Inference with Bayesian Networks
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This chapter provides a practical introduction to two structural frameworks designed for representing and reasoning about complex relationships among observed and unobserved variables. We start with an overview of Structural Equation Modeling (SEM), detailing its components and methods for analyzing fit statistics to either support or refute a hypothesized model. Following this, we introduce Structural Causal Modeling (SCM), which utilizes structural equations similar to SEM but necessitates that the dependent variables (endogenous) be defined through functional equations involving both exogenous and endogenous variables. In a structural causal model, exogenous variables are described by a probability distribution and are independent of the endogenous variables. Unlike SEM, SCM inherently incorporates causality, where Directed Acyclic Graphs (DAGs) are used to show how dependent variables are related to each other. The representation of these graphs and their...