Causation vs. Correlation: Insights and Illusions

This chapter examines the fallacy of confusing correlation with causation, using the stork and babies analogy to highlight misconceptions in statistical reasoning. It explores contemporary issues, including the effects of smartphones on youth mental health, drawing parallels to past research like smoking and lung cancer studies. The narrative emphasizes the importance of natural experiments and random trials in establishing causal relationships, while also leading into the strategic dynamics of board games and auctions as metaphors for real-world economic principles.