Explain the difference between an indirect and direct effect in causal modeling.
What will be an ideal response?
Ans: In causal modeling, a direct effect is present if one variable influences another. This is typically indicated with an arrow and the variable before the arrow influences the variable after the arrow. An indirect effect occurs when the influence of one variable influences another, intervening, variable which in turn influences a third variable. Typically an indirect variable is indicated with a series of three variables with arrows before and after the second variable. In this notation structure, the second variable is the intervening variable between the first and the third.
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