You are working for a firm that has developed a super low cost laptop, with the goal of selling it to middle school students. Your CEO asks you to provide some evidence that having a computer will result in better school performance for students. You have gained access to a nice randomly sampled dataset of student performance on standardized tests (score) and whether each student owns a computer or not. You regress test scores on the dummy of computer ownership. The coefficient is highly economically and statistically significant and positive.

1. You are worried about lurking variables. Name the main lurking variable you are concerned about
2. Draw me a path diagram clearly labelling and signing the direct effects and the correlation between computer ownership and your lurking variable
3. Do you worry that your coefficient on computer ownership in the SRM you estimated is too large or too small? Explain in a sentence or two.