It controls the maximum allowed level of interaction between variables in the model.
It is based on correlations between variables by which different patterns can be identified and analyzed.
Their research has enabled others to study the relationship between variables, like personal wealth and consumer spending, in ways not possible before.
PA may influence the relationships between variables in organizational research.
Experimental research is used to determine what will be or to establish a cause-and-effect relationship between variables.
Thus the correlation function between variables and is given by:
The slope, in regression analysis, also reflects the relationship between variables.
Experimental research is the best approach for determining causal relationships between variables.
It is also able to take into account the dependence structure between variables.
These models estimated the relations between different macroeconomic variables using time series analysis.