question archive You are trying to model the effect of class size on students' performance in schools

You are trying to model the effect of class size on students' performance in schools

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You are trying to model the effect of class size on students' performance in schools. You hypothesize that larger class size (number of students per teacher) should decrease test scores in school. But you forgot to control for median income in the community, that is income in the community is part of the error term. Would you expect coefficient for class size to be biased? Discuss directionality of bias. TestScore_i=B0+B1*ClassSize_i+ε_i. You must show your work.

 

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