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Based on the downloaded econometric working paper, entitled: The Econometric Analysis of Factors Affecting the Demand for Frozen Food, the causal relationship will exist when a dependent variable gives effects to the independent variables. In this paper, the author did the analysis on causal relationship between the factors affecting the demand for frozen food, such as education level of the mother, number of family members, status of the mother, possession of a house, possession of an automobile, possession of deep freeze, life period of the family and the income level. From the analysis, the cause variable is the factors affecting the demand for frozen food while the effect variable is the demand for frozen food.
From the paper, the correlation between the cause and effect variable varies, which is positive and negative correlation. There is positive correlation between the variable mother’s level of education, possession of a house and an automobile with the demand for the frozen food. This can be proven because, the more educated the mother, when an individual own a house and mobile, there will be higher demand for them towards the frozen food. Moreover, the income level shows the positive correlation towards the effect variable, when someone’s income increase, the demand will be increase too. For the variable status of the mother, a married mother will demand more because of her family. However, number of family members, possession of deep freeze and life period of the family were negatively correlated with the effect variable. But we cannot say that these variables show negative effect, there must be other effects that might control the dependent variable. Negatively correlation does not mean that the variables are not important at all, it just like they do not give too much effect to the model.

Post Author: admin