See attached

__Directions: __

**Please follow the instructions on the syllabus indicating how to complete and turn in this assignment. **

1. The world is awash with people confusing correlation with causation – and the implications of this mistake are often enormous. *Sometimes* correlation exists because of an underlying causation, but sometimes (even when it seems like there should be – or you just REALLY want there to be causation) the correlation isn’t driven by any correlation. Please come up with your own (don’t just google) significant real-world example where correlation exists, but it may likely not be causal. Explain how regression analysis could point this out.

2. What does statistical significance of an independent variable mean? Why does it matter?

3. Propose a regression equation you would like to estimate. Write out the equation and define the dependent and independent variables and indicate how you would measure them. What type of data would you use and, as a result, what is an observation in your dataset? Finally, why would you want to estimate this regression – what would be the purpose/insight?