Because schools in areas affected by these natural disasters were disproportionately low performing schools, many students affected were not only forced to switch schools, but also ended up switching to a higher quality school. Sacerdote finds initial declines in test scores (likely due to the shock of displacement), but “by the third and fourth years after the disaster, evacuees displaced [by these natural disasters] see a 0.18 standard deviation improvement in scores.” Sacerdote also finds that the improvements observed were “concentrated among students initially in the lowest quintiles of the test score distribution.” 1. Define the outcome (Y), the endogenous regressor (X), and the instrument (Z) in the context of this study.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Because schools in areas affected by these natural disasters were disproportionately low performing
schools, many students affected were not only forced to switch schools, but also ended up switching to a
higher quality school. Sacerdote finds initial declines in test scores (likely due to the shock of
displacement), but “by the third and fourth years after the disaster, evacuees displaced [by these natural
disasters] see a 0.18 standard deviation improvement in scores.” Sacerdote also finds that the
improvements observed were “concentrated among students initially in the lowest quintiles of the test
score distribution.”
1. Define the outcome (Y), the endogenous regressor (X), and the instrument (Z) in the context of
this study.
2. Is this instrument relevant? Explain why or why not.
3. Is this instrument exogenous? Explain why or why not.
4. For what group of individuals is this study externally valid? List at least two groups for which this
study is unlikely to yield externally valid estimates.
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