0:00
Intro Stats / AP Statistics
For a child living in a particular school district, let voucher_i be a dummy variable equal to one if a child is selected to participate in a school voucher program, and let score_i be that child's score on a subsequent standardized exam. Suppose that the participation variable, voucher_i, is completely randomized in the sense that it is independent of both observed and unobserved factors that can affect the test score.
(a) Suppose you can collect additional background information, such as family income, family structure (e.g., whether the child lives with both parents), and parents' education levels. Do you need to control for these factors to obtain an unbiased estimator of the effects of the voucher program? Explain.
(b) If your main focus is the effect of the voucher program, is there a reason why you might want to include the other background variables, regardless of whether you need to get an unbiased estimate?