For the scenarios below, please say what evaluation approach you would use (Rand

Question

For the scenarios below, please say what evaluation approach you would use (Randomization, IV, RD, Diff-in-diff) and provide details on how you would set up your evaluation (data needed and regression model, specifying dependent variables and explanatory variables).

Q. Peter Pan is trying to recruit some more lost children! He doesn’t have time to go and personally invite every little boy and every little girl but he randomly chooses a few dozen children and visits them at night to tell them all about Neverland. To be fair to everyone, he also opens up the Neverland gates to any boy (and girl!) who wants to join so that even kids who didn’t get a personal visit could join. Now, Peter knows that the children who come to Neverland are happy children but he recently heard about the issue of “selection”. So he is starting to wonder if the children come to Neverland because they are happy or they are happy because they came to Neverland. He comes to you and asks you for help in figuring out whether coming to Neverland actually causes children to be happier. What evaluation approach would you suggest and what data would you ask for/collect?

Explanation / Answer

Solution

The very first step would be to develop an index to quantify happiness by means a questionnaire.

Then, collect a set of volunteer children to go to Neverland.

Evaluate their happiness index.

Let half the number of children to stay back wherever they are and take the other children to Neverland for a stay of sufficiently long duration

Evaluate the happiness index for both groups.

For each group find the mean difference in happiness index and statistically test if it is significantly higher for the group that spent days in Neverland.

If significant, there is sufficient evidence to suggest that the claim that stay in Neverland makes children happy is valid.

DONE

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