CHAPTER 9 Why Correlation Doesn’t Imply Causation Flashcards
What does correlation not necessarily imply?
Causation
Correlation indicates a relationship between variables but does not confirm one causes the other.
What are the two key reasons why an observed correlation might be a biased estimate of a causal relationship?
- Confounders
- Reverse causation
Confounders are external factors that can influence both variables, while reverse causation occurs when the outcome affects the predictor.
Why is understanding the distinction between correlation and causation important?
It prevents making decisions based on misguided beliefs about how actions will affect outcomes
Misinterpreting correlation as causation can lead to significant errors in decision-making.
What is the definition of causation?
A change in some feature of the world that would result from a change to some other feature of the world
Causation implies that one event is the result of the occurrence of another event.
What is the main argument behind charter schools?
To encourage innovation and choice in education
Charter schools operate independently of the public school system and aim to provide alternatives to traditional education.
What happens when charter schools are oversubscribed?
Students are admitted by random lottery
This process ensures a fair chance for all applicants regardless of background.
What correlation exists between charter school attendance and academic performance?
Low-income students in charter schools have better educational outcomes than those in traditional public schools
This correlation is based on observed performance metrics such as test scores and graduation rates.
What is the significance of the Preuss School in the discussion of charter schools?
It has demonstrated outstanding academic outcomes for its students
The school serves low-income students and has a high rate of college admissions.
What critical question arises when evaluating the effectiveness of charter schools?
Does attending a charter school improve a child’s educational outcomes compared to attending a local public school?
This question addresses the core of the debate regarding charter schools’ impact.
How can we better assess the causal impact of charter schools?
By comparing the performance of lottery winners to lottery losers
This method accounts for the characteristics of students who applied to charter schools.
What was found when comparing lottery winners and losers at the Preuss School?
The correlation between charter school attendance and performance disappeared; no performance difference was found
This suggests that prior academic differences, not charter school attendance, may account for performance.
What conclusion can be drawn from studies on charter school effectiveness?
In many cases, there is no evidence that winning a charter school lottery impacts achievement
This highlights the importance of comparing similar groups to draw causal inferences.
What are potential outcomes in the context of causal relationships?
They represent the hypothetical outcomes for individuals based on whether they received a treatment or not
This framework helps clarify the causal impact of interventions.
What is the treatment variable represented by T in causal analysis?
Going to the charter school
T = 1 indicates attendance at a charter school, while T = 0 indicates attendance at a public school.
What does T = 1 indicate for an individual in the context of school attendance?
T = 1 indicates that the individual attended the charter school.
What does T = 0 indicate for an individual in the context of school attendance?
T = 0 indicates that the individual attended a public school.
What are the two potential standardized test scores for an individual based on school attendance?
Y1i (if attended charter school) and Y0i (if attended public school).
What is the effect of going to the charter school on person i’s test scores denoted as?
Y1i - Y0i.
What is the Average Treatment Effect (ATE)?
ATE is the average effect of going to a charter school across a population.
What is the population difference in means?
The difference in average test scores between charter school students and public school students.
What is the Average Treatment Effect on the Treated (ATT)?
ATT is the average effect of going to the charter school among those who attended the charter school.
What is the Average Treatment Effect on the Untreated (ATU)?
ATU is the average effect of going to the charter school among those who attended public schools.
True or False: The ATE can be directly observed.
False.
What does the bias term indicate when estimating the ATT?
It indicates that the two groups have baseline differences.