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Question 1: Each of the scenarios below represent situations in which (1) either all necessary assumptions for the unbiasedne

Scenario 1 - You are interested in studying the effect of class size on student learning. You encounter a data set of 500 col

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The answer is (1) all the necessary assumptions for unbiasdness of OLS estimators is satisfied. Since the students are randomly assigned to the the clasees - small, regular or large, there is no correlation with the error terms and there is no omitted variable bias. OLS interpretation has a causal inference as it is using some external variation to get the measure of effect on test score.

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