Problem & PC Algorithm
Correlation β causation. "Customers using feature X have higher retention" β push to all β no improvement: users self-selected. The hypothesis: causal graphs from observational data identify high-leverage interventions.
PC Algorithm (Peter and Clark):
- Start assuming all variables connected
- Remove edges when conditionally independent
- Orient edges via v-structures and d-separation
- Output causal DAG β undirected edges where direction is indeterminate
Synthetic data: recovers most relationships; struggles with bidirectional causation; fails on non-linear relationships. Real data: often contradicts domain knowledge, indicating assumption violations.