1. In both of the graphs below, the "index score" represents the standardized test score, which is re-centered so that 0 represents the pass-fail cutoff. Interpret the findings in Panel A of the graph. Why do you think that the probability of being retained is never 100%, even with failing test scores?

0.B. 0.6 Q Probability of grade retention 0.4. 0.2. -2 -1.5 -1 -0.5 0.5 1.5 2 Index score A. Relationship between index and grade retention 0.1_ 0.05 - O O 0- O Dropout residual -0.05- -0.1- -0.15 0.5 2 -2 -1.5 -0.5 0 1.9 Index score B. Relationship between index and dropout residual0.8 0.6 Probability of grade retention 0.2 -2 -1.5 -0.5 0.5 1.5 2 Index score A. Relationship between index and grade retention 0.2_ 0.1. O O Dropout residual O 0 000 O O -0.1 O O -2 -1.5 -1 -0.5 0 0.5 1.5 Index score B. Relationship between index and dropout residual