In the context of a controlled experiment, consider the simple linear regression formulation Yi = β0 + β1Xi + Ui. Let the Yi be the outcome, Xi the treatment level when the treatment is binary, and Ui contain all the additional determinants of the outcome. Then: a. the OLS estimator of the slope will be inconsistent in the case of a randomly assigned Xi since there are omitted variables present. b. Xi and Ui will not be independently distributed if the Xi are randomly assigned. c. β0 represents the causal effect of X on Y when X is zero. d. E(Y|X= 1) is the expected value for the treatment group. e. All of the above. f. None of the above.
In the context of a controlled experiment, consider the simple linear regression formulation Yi = β0 + β1Xi + Ui. Let the Yi be the outcome, Xi the treatment level when the treatment is binary, and Ui contain all the additional determinants of the outcome. Then: a. the OLS estimator of the slope will be inconsistent in the case of a randomly assigned Xi since there are omitted variables present. b. Xi and Ui will not be independently distributed if the Xi are randomly assigned. c. β0 represents the causal effect of X on Y when X is zero. d. E(Y|X= 1) is the expected value for the treatment group. e. All of the above. f. None of the above.
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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In the context of a controlled experiment, consider the simple linear regression formulation Yi = β0 + β1Xi + Ui. Let the Yi be the outcome, Xi the treatment level when the treatment is binary, and Ui contain all the additional determinants of the outcome. Then:
a.
the OLS estimator of the slope will be inconsistent in the case of a randomly assigned Xi since there are omitted variables present.
b.
Xi and Ui will not be independently distributed if the Xi are randomly assigned.
c.
β0 represents the causal effect of X on Y when X is zero.
d.
E(Y|X= 1) is the
e.
All of the above.
f.
None of the above.
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