tutorial2 - Week2TutorialExercises ProblemSet...

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Week 2 Tutorial Exercises Problem Set Q1. Wooldridge 1.1 (i) Ideally, we could randomly assign students to classes of different sizes. That is, each student is assigned a different class size without regard to any student characteristics such as ability and family background. For reasons we will see in Chapter 2, we would like substantial variation in class sizes (subject, of course, to ethical considerations and resource constraints). (ii) A negative correlation means that larger class size is associated with lower performance. We might find a negative correlation because larger class size actually hurts performance. However, with observational data, there are other reasons we might find a negative relationship. For example, children from more affluent families might be more likely to attend schools with smaller class sizes, and affluent children generally score better on standardized tests. Another possibility is that, within a school, a principal might assign the better students to smaller classes. Or, some parents might insist their children are in the smaller classes, and these same parents tend to be more involved in their children’s education.
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This note was uploaded on 02/29/2012 for the course ECON 2206 taught by Professor Yang during the One '11 term at University of New South Wales.

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tutorial2 - Week2TutorialExercises ProblemSet...

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