WEBVTT 99:59:59.999 --> 99:59:59.999 - [Narrator] On his quest to master econometrics, 99:59:59.999 --> 99:59:59.999 Grasshopper Kamal has made great progress 99:59:59.999 --> 99:59:59.999 stretching his capabilities and outsmarting his foes. 99:59:59.999 --> 99:59:59.999 Alas, today he's despondent. 99:59:59.999 --> 99:59:59.999 For one challenge remains unmet. 99:59:59.999 --> 99:59:59.999 Kamal cannot yet decode the scriptures of academic research, 99:59:59.999 --> 99:59:59.999 journals like "The American Economic Review" 99:59:59.999 --> 99:59:59.999 and "Econometrica." 99:59:59.999 --> 99:59:59.999 These seemed to him to be inscribed in an obscure foreign tongue. 99:59:59.999 --> 99:59:59.999 - [Kamal] Ugh, what the... ? 99:59:59.999 --> 99:59:59.999 - [Narrator] These volumes are opaque to novice, Kamal, 99:59:59.999 --> 99:59:59.999 but can be deciphered with study. 99:59:59.999 --> 99:59:59.999 Let us learn to read them together. 99:59:59.999 --> 99:59:59.999 Let's dive into the West Point study, 99:59:59.999 --> 99:59:59.999 published in the "Economics of Education Review." 99:59:59.999 --> 99:59:59.999 This paper reports on a randomized evaluation 99:59:59.999 --> 99:59:59.999 of student electronics use in Economics 101 classrooms. 99:59:59.999 --> 99:59:59.999 First, a quick review of the research design. 99:59:59.999 --> 99:59:59.999 - Okay. 99:59:59.999 --> 99:59:59.999 - [Josh] 'Metrics masters teaching at West Point, 99:59:59.999 --> 99:59:59.999 the military college that trains American Army officers 99:59:59.999 --> 99:59:59.999 designed a randomized trial to answer this question. 99:59:59.999 --> 99:59:59.999 These masters randomly assigned West Point cadets 99:59:59.999 --> 99:59:59.999 into Economics classes operating under different rules. 99:59:59.999 --> 99:59:59.999 Unlike most American colleges, 99:59:59.999 --> 99:59:59.999 the West Point default is no electronics. 99:59:59.999 --> 99:59:59.999 For purposes of this experiment, some students were left 99:59:59.999 --> 99:59:59.999 in such traditional technology-free classes, 99:59:59.999 --> 99:59:59.999 no lap tops, no tablets and no phones! 99:59:59.999 --> 99:59:59.999 [voice echoes] 99:59:59.999 --> 99:59:59.999 This is the control group, or baseline case. 99:59:59.999 --> 99:59:59.999 Another group was allowed to use electronics. 99:59:59.999 --> 99:59:59.999 This is the treatment group, subject to a changed environment. 99:59:59.999 --> 99:59:59.999 The treatment in this case is the unrestricted use 99:59:59.999 --> 99:59:59.999 of laptops or tablets in class. 99:59:59.999 --> 99:59:59.999 Every causal question has a clear outcome, 99:59:59.999 --> 99:59:59.999 the variables we hope to influence defined in advance of the study. 99:59:59.999 --> 99:59:59.999 The outcomes in the West Point electronics study 99:59:59.999 --> 99:59:59.999 are final exam scores. 99:59:59.999 --> 99:59:59.999 The study seeks to answer the following question, 99:59:59.999 --> 99:59:59.999 what is the causal effect of classroom electronics on learning 99:59:59.999 --> 99:59:59.999 as measured by exam scores? 99:59:59.999 --> 99:59:59.999 - Economics journal articles usually begin with a table 99:59:59.999 --> 99:59:59.999 of descriptive statistics, giving key facts 99:59:59.999 --> 99:59:59.999 about the study sample. 99:59:59.999 --> 99:59:59.999 - Oh my gosh, I remember this table, so confusing! 99:59:59.999 --> 99:59:59.999 Columns 1 to 3 report mean, or average, characteristics. 99:59:59.999 --> 99:59:59.999 These give a sense of who we're studying. 99:59:59.999 --> 99:59:59.999 Let's start with column 1 which describes covariates 99:59:59.999 --> 99:59:59.999 in a control group. 99:59:59.999 --> 99:59:59.999 Covariates are characteristics of the control and treatment groups 99:59:59.999 --> 99:59:59.999 measured before the experiment begins. 99:59:59.999 --> 99:59:59.999 For example, we see the control group has an average age a bit over 20. 99:59:59.999 --> 99:59:59.999 Many of these covariates are dummy variables. 99:59:59.999 --> 99:59:59.999 A dummy variable can only have two values, a zero or a one. 99:59:59.999 --> 99:59:59.999 For example, student gender is captured by a dummy variable 99:59:59.999 --> 99:59:59.999 that equals one for woman and zero for man. 99:59:59.999 --> 99:59:59.999 The mean of this variable is the proportion female. 99:59:59.999 --> 99:59:59.999 We also see that the control group is 13% Hispanic 99:59:59.999 --> 99:59:59.999 and 19% had prior military service. 99:59:59.999 --> 99:59:59.999 The table notes are key. 99:59:59.999 --> 99:59:59.999 Refer to these as you scan the table. 99:59:59.999 --> 99:59:59.999 These notes explain what's shown in each column and panel. 99:59:59.999 --> 99:59:59.999 The notes tell us, for example, that standard deviations 99:59:59.999 --> 99:59:59.999 are reported in brackets. 99:59:59.999 --> 99:59:59.999 Standard deviations tell us how spread out the data are. 99:59:59.999 --> 99:59:59.999 For example, a standard deviation of 0.52 tells us that most 99:59:59.999 --> 99:59:59.999 of the control group's GPAs fall between 2.35, 99:59:59.999 --> 99:59:59.999 which is 0.52 below the mean GPA of 2.87, 99:59:59.999 --> 99:59:59.999 and 3.39, which is 0.52 above 2.87. 99:59:59.999 --> 99:59:59.999 A lower standard deviation would mean the GPAs were 99:59:59.999 --> 99:59:59.999 more tightly clustered around the mean. 99:59:59.999 --> 99:59:59.999 - [Kamal] Yeah, but they're missing from most of the variables. 99:59:59.999 --> 99:59:59.999 - [Narrator] That's right. 99:59:59.999 --> 99:59:59.999 Masters usually omit standard deviations for dummies 99:59:59.999 --> 99:59:59.999 because the mean of this variable determines its standard deviaton. 99:59:59.999 --> 99:59:59.999 This study compares two treatment groups with the control group. 99:59:59.999 --> 99:59:59.999 The first was allowed free use of laptops and tablets. 99:59:59.999 --> 99:59:59.999 The second treatment was more restrictive, 99:59:59.999 --> 99:59:59.999 allowing only tablets placed flat on the desk. 99:59:59.999 --> 99:59:59.999 The treatment groups look much like the control group. 99:59:59.999 --> 99:59:59.999 Hmmm... 99:59:59.999 --> 99:59:59.999 This takes us to the next feature of this table, columns 4 through 6 99:59:59.999 --> 99:59:59.999 use statistical tests to compare the characteristics 99:59:59.999 --> 99:59:59.999 of the treatment and control group before the experiment. 99:59:59.999 --> 99:59:59.999 In column 4, the two treatment groups are combined. 99:59:59.999 --> 99:59:59.999 You can see that the difference in proportion female 99:59:59.999 --> 99:59:59.999 between the treatment and control group is only 0.03. 99:59:59.999 --> 99:59:59.999 The difference is not statistically significant. 99:59:59.999 --> 99:59:59.999 It is the sort of difference we can easily put down 99:59:59.999 --> 99:59:59.999 to chance results in our sample selection process. 99:59:59.999 --> 99:59:59.999 - [Kamal] Hmm, how do we know that? 99:59:59.999 --> 99:59:59.999 - [Narrator] Remember the rule of thumb? 99:59:59.999 --> 99:59:59.999 Statistical estimates that exceed the standard 99:59:59.999 --> 99:59:59.999 by a multiple of 2 in absolute value 99:59:59.999 --> 99:59:59.999 are usually said to be statistically significant. 99:59:59.999 --> 99:59:59.999 The standard error is 0.03, 99:59:59.999 --> 99:59:59.999 same as the difference in proportion female. 99:59:59.999 --> 99:59:59.999 So the ratio of the latter to the former is only 1, 99:59:59.999 --> 99:59:59.999 which of course is less than 2. 99:59:59.999 --> 99:59:59.999 - [Kamal] Uh huh. So none of the treatment/control differences 99:59:59.999 --> 99:59:59.999 in the table are more than twice their standard errors. 99:59:59.999 --> 99:59:59.999 - [Narrator] Correct. 99:59:59.999 --> 99:59:59.999 The random division of students appears to have succeeded 99:59:59.999 --> 99:59:59.999 in creating groups that are indeed comparable. 99:59:59.999 --> 99:59:59.999 We can be confident therefore that any later differences 99:59:59.999 --> 99:59:59.999 in classroom achievement are the result of the experimental 99:59:59.999 --> 99:59:59.999 intervention rather than a reflection 99:59:59.999 --> 99:59:59.999 of preexisting differences. 99:59:59.999 --> 99:59:59.999 Ceteris paribus achieved! 99:59:59.999 --> 99:59:59.999 - [Kamal] Cool. Wait, what about the bottom, 99:59:59.999 --> 99:59:59.999 the numbers with the stars? 99:59:59.999 --> 99:59:59.999 Those differences are a lot more than double the standard error. 99:59:59.999 --> 99:59:59.999 - [Narrator] Good eye, Kamal! 99:59:59.999 --> 99:59:59.999 The table has many numbers. 99:59:59.999 --> 99:59:59.999 Those in Panel B are important too. 99:59:59.999 --> 99:59:59.999 This panel measures the extent to which students in treatment 99:59:59.999 --> 99:59:59.999 and control groups actually use computers in class.