Suppose that you are asked to conduct a study to determine whether smaller class sizes lead to
Question:
(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.
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Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge
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