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Assignment Purpose: The purpose of this assignment is to develop your understanding of the basic principles and terminology related to econometrics. Additionally, this assignment encourages you to begin to think critically about how we identify causal effects in our world. Assignment Details: 1. Read: Chapters 1 and 16 in Bailey o Respond to these prompts: A. In your own words explain the difference between correlation and causality. B. Provide your own original example of a situation where correlation is often mistaken for causality. C. In your own words, explain the two challenges to identifying causality. 2. Read: High Gun Sales And More Time At Home Have Led to More Accidental Shootings By Kids (Links to an external site.). o Consider the news story linked above: A. Identify the potential correlations between accidental

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