QUESTION
What does Observe do? The page doesn't show anything.
ANSWER
Observe is for observing your students while they test. It shows only students for the currently selected class. If you have "Class One" selected you won't see students from other classes. And you won't see anything unless a student is actively testing, entering answers to an assigned quiz for a grade. Students who are simply practicing won't appear.
TRY IT OUT
Try clicking "Observe" while students for the selected class are actively completing an assigned test. You should all of their work in progress. Use the slider at the top of the page to zoom in or out. It looks like this: