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book Introductory Econometrics 4th Edition by Jeffrey Wooldridge cover

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Edition 4ISBN: 978-0324660609
book Introductory Econometrics 4th Edition by Jeffrey Wooldridge cover

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Edition 4ISBN: 978-0324660609
Exercise 1
Suppose that you are asked to conduct a study to determine whether smaller class sizes lead to improved student performance of fourth graders.
(i) If you could conduct any experiment you want, what would you do Be specific.
(ii) More realistically, suppose you can collect observational data on several thousand fourth graders in a given state. You can obtain the size of their fourth-grade class and a standardized test score taken at the end of fourth grade. Why might you expect a negative correlation between class size and test score
(iii) Would a negative correlation necessarily show that smaller class sizes cause better performance Explain.
Explanation
Verified
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(i)
The most appropriate way that it can be done is to randomly assign students under different class sizes. This means that every student is assigned a different class size without considering any of the student's characteristics like their ability and family background.
(ii)
If for instance, it is likely to obtain the observational data on several thousand fourth graders in a given state, then it might be expected that a negative correlation between class sizes and test score exists. A negative correlation simply indicates that a class of smaller class size is associated to higher performance. For example, children from rich families might be more expected to attend the schools having smaller class sizes, and rich children generally score better than others on the standardized tests. Another possible situation might be that a school principal assigns well students to minor classes. Or, some of the parents may assert that their children are in the minor classes, and these same parents tend to be highly involved in the education of their children.
(iii)
There is strong evidence to believe that a smaller class size causes better performance. The one of the possibility is that some parents might insist their children to be seated in the smaller classes and thus such parents are be likely to be extra involved in their children's education.
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Introductory Econometrics 4th Edition by Jeffrey Wooldridge
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