# Is this test answer good enough to show Granger Causality?

I used an inbuilt Matlab function to check for Granger Causality between two time series P and T that have a correlation coefficient of 0.6.

On running it, I got the following answer:

>> [fs,cv] = granger_cause(P, T,0.05,2)

fs =

1.0281e+003

cv =

2.9966


where FS is the F-Statistic and cv is the critical value from the F-Distribution.

Does this show causality? Actually... what does it show?

• In the source file, it is reported that "Note that if F > c_v we reject the null hypothesis that y does not Granger Cause x". Please clarify your question if it is not a MATLAB issue but rather a statistical question.
– chl
Oct 28 '13 at 8:10