Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2024/iii/paper-221/3/i/solution

A nonparametric structural equation model for the graph can be written
The bidirected edge permits dependence between and ; apart from this pair the exogenous variables are mutually independent. The basic potential outcomes are
and the natural nested outcome is .
The exogenous independences imply that the whole family is independent of , while is independent of and the basic response potentials. The bidirected edge means that and need not be independent. Useful observed-counterfactual consequences include

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