Quiz 5

Total Points: 16

You want to study the effect of free/reduced-cost lunches on grades. To study this, you decide to implement an RCT in Albemarle County. In this RCT, some children randomly receive free school lunches every day while others must pay for their school lunches. You will compare the GPAs of students who receive free lunch to those who still need to pay for their lunch. However, you realize that some students who were assigned to receive free school lunches dislike their school cafeteria, so they choose to pack their lunch. To address this issue, you decide to implement an IV design. GPA is measured as a grade point average ranging from 0 to 4, and we have binary answers whether a student eats the free lunch or not on a particular day, and a binary assignment variable. With this information, answer the following question:

1. What is the instrument, treatment, and outcome in this situation?
1. Instrument
1. Being assigned to receive free lunches
2. GPA
3. The amount students are paying for lunch
4. Eating a free school lunch
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Answer
2. Treatment
1. Being assigned to receive free lunches
2. GPA
3. The amount students are paying for lunch
4. Eating a free school lunch
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Answer
3. Outcome
1. Being assigned to receive free lunches
2. GPA
3. The amount students are paying for lunch
4. Eating a free school lunch
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Answer
2. You run the following regression of GPA on assignment to free lunch. What is the interpretation of your coefficient on being assigned to receive free lunches? Select all that apply.
$$GPA = 2.9 + 0.08(AssignmentToFreeLunch)$$
1. Eating a free school lunch is associated with a 0.08 increase in GPA.
2. Being assigned to receive free lunch is associated with a 0.08 point increase in GPA.
3. Being assigned to receive free lunch is associated with an 8 percentage point increase in GPA.
4. It is the intent to treat effect.
5. It is the first stage effect.
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Answer
3. You run the following regression of eating free lunch on assignment to receive free lunch. What is the interpretation of your coefficient on being assigned to receive free lunches? Select all that apply.
$$EatingFreeLunch = 0.30 + 0.70(AssignmentToFreeLunch)$$
1. Individuals who are assigned to receive free lunch are 0.70 percentage points more likely to eat free lunch.
2. Individuals who are assigned to receive free lunch are 70 percentage points more likely to eat free lunch.
3. It is the first stage effect.
4. It is the intent to treat effect.
5. It is the second stage
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Answer
4. Given the data from the previous questions, what is the effect of eating free lunches on GPA?
1. Eating free school lunches is associated with a 0.001 point increase in GPA.
2. Eating free lunch is associated with a 0.114 point increase in GPA.
3. Eating free lunch is associated with a 11.4 percentage point increase in GPA.
4. Eating free lunch is associated with a 8.75 point increase in GPA.
5. Eating free lunch is associated with a 0.875 point increase in GPA.
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Answer
5. What are the compliers from this group?
1. People who always pack their own lunch and eat it
2. People who always eat at the cafeteria
3. People who were not assigned to free lunch at the cafeteria, and because of that decided to lunch in the cafeteria
4. People who because they were assigned to free lunch, decided to eat in the cafeteria.
6. Given that average GPA of these students is 3.5, what is the percent increase in GPA associated with eating free lunch?
1. 30.7 percent
2. 0.0325 percent
3. 3.25 percent
4. 3.07 percent
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Answer