Causal Inference
Statistical methods that estimate causal effects from observational or experimental data.
Last updated: 2026-05-04
Definition
WatEase ships five: Difference-in-Differences (DiD), Synthetic Control Method (SCM), Propensity Score Matching (PSM), Regression Discontinuity Design (RDD), and Instrumental Variables (IV). Each suits a different data shape — DiD needs treated + control groups around an intervention; SCM builds a synthetic counterfactual from untreated cohorts; RDD exploits sharp thresholds (free shipping over ₹999). Together they triangulate true incremental lift from observational marketing data.
How it applies in India
No India-specific behavior.
Related terms
- IncrementalityThe lift caused BY a marketing intervention, vs. what would have happened without it.
- Difference-in-Differences (DiD)A causal method that compares the change in outcome over time between a treated group and a control group.
- Synthetic Control Method (SCM)Builds a counterfactual for a treated unit from a weighted combination of untreated units.
- Instrumental Variables (IV)Uses an external 'instrument' that affects treatment but not outcome directly to identify causal effects.
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