Q.1. If you see a correlation between two variables, for example education and economic
development, does that necessarily mean causality? How would you measure economic development and education at the country-level?
Q.2. An NGO implements a job training program that provides technical skills to young
adults (between ages 18-25) in the fictitious village of Bugle. The small village has 20 individuals that could participate in the program, but only 10 actually attend (and complete)
the training A year after the end of the program, the NGO collects data about program
participation and daily wages.
Using the data below, answer the following questions:
a. How many variables are there in the dataset?
b. What is the difference in daily wage between participants and non-participants?
c. Based on the variables available in the data, does the treatment seem to be assigned
randomly? Can we conclude that job training increases daily wage? Why?
Person Sex Treatment Age Daily Wage in USD
1 female Yes 25 2.2
2 female Yes 18 1.8
3 male Yes 24 3.25
4 female Yes 24 1.95
5 male Yes 23 1.5
6 female Yes 20 4.5
7 male Yes 21 1.25
8 female Yes 22 2
9 female Yes 21 1.25
10 female Yes 25 2.5
11 male No 22 1.25
12 female No 18 1.75
13 male No 21 1.05
14 female No 24 1.1
15 male No 21 1.8
16 male No 22 2.2
17 male No 19 1.15
18 female No 18 1.85
19 female No 20 1.05
20 female No 20 0.5