Suppose we wish to study the effect of recreational drug use on academic performance using observational data . True or False:

  1. Suppose we wish to study the effect of recreational drug use on academic performance using observational data.

True or False: Because it is an individual choice, recreational drug use may be correlated with other factors that influence grades, such as one’s motivation to do well in school.

2. A professor, wishing to better understand the effect of recreational drug use on grades, plans to randomly assign recreational drugs to her students and observe the impact on their long-run academic performance.

Check all that apply: 

A. For what reasons might this study be problematic? 

B. Econometric methods can never be used to study causal relationships.

C. Forcing randomly selected students to take drugs is ethical problematic.

D. It’s unlikely there’s any link between drug usage and academic performance.

E. Providing drugs to students and observing their long-run outcomes may be prohibitively costly.

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