Problem
Fixed Effects Suppose that you are trying to study the effects of a tutoring program in students of 3 different sections of ECON102. A randomly selected half of the students in each course were offered free tutoring and you would like to see if those students get higher test scores. The teachers of the 3 sections coordinated with each other and gave the exact same tests (midterms 1-3 and a final exam).
You have data on each student's tutoring status and scores on each of the 4 exams.
1. Each section is taught by a different instructor, so you think that you should include fixed effects in the regression to help control for those differences. Explain why you can or cannot use entity fixed effects for the different sections.
2. If you were going to include time fixed effects, how many time periods would there be? Why?
3. Write a specification with the proper subscripts where you try to predict the score each student earns on each test using the information that you have.