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Diagnostics · inference

Econometrics ER

The analysis is in trouble. Make the diagnosis.

Original teaching scenarios; these are not reports of actual studies. Choose an answer, then reveal the reasoning. Your first answer counts.

Case 1 of 40 / 0 correct

Disappearing stars

Treatment was randomized by village. The OLS coefficient is unchanged, but its standard error rises when clustered by village. What happened?

Your judgment
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