"The problem is that because small schools don’t have a lot of students, scores are much more variable. If for random reasons a few geniuses happen to enroll in a small school scores jump up for that year and if a few extra dullards enroll the next year scores fall." ...
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... How is this remotely comparable to the situation with small states. Is Hong Kong random-walking around the PISA, IQ, or economic indices? Of course not. ...
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... There's no reason at all to think the qualities of excellent small states are any kind of statistical artifact. (Given their size, compared to that of a small school, this should obviously not be surprising.)
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