1. Suppose you are interested in the causal effect of taking a test prep course on a student's SATscore. (The SAT is a test which is often used by universities in the U.S. to help determineadmission decisions.) The following table shows the potential SAT scores for Amanda and Filipeif they had taken the course and if they had not taken the course. Y denotes the actual SAT scorefor person i, D, is an indicator for whether person i took the course, and the potential outcomenotation is the same as used in the class notes.Y₁Y₁Amanda1180122011800Felipe1120123012301a. What is the causal effect of taking the course on Amanda's SAT score? What is the causaleffect of taking the course for Felipe?b. What is the average treatment effect (ATE) for this population of two students?c. What is the average effect of treatment on the treated (ATT) for this population of twostudents?d. Suppose you only have access to the variables Y and D₁. What is the observed difference inSAT scores between Felipe and Amanda? Decompose this difference into the true causal effectof taking the course for Felipe and the selection bias.

In this problem, we are examining the causal effect of taking a test prep course on the SAT scores…

Answered: 1. Suppose you are interested in the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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