Variable Average for treatment group Average for control group Difference t statistic for difference GPA 3.23 3.24 -0.01 -0.44 time spent working per week 20.80 20.00 0.80 2.60 Female (=0 if male) 0.53 0.57 -0.04 -0.50 Full time student (=0 if part time student) 0.74 0.70 0.04 0.78
Problem 2-
Experiments/Randomized Control Trial
Suppose you are interested in studying the effect of academic counselling on the years it takes for a student to obtain an undergraduate degree. You conduct a randomized control trial to answer the question. You randomly assign 2500 individuals in a university in New York to receive academic counselling and 2500 students to not receive any academic counselling.
a. Which people are a part of the treatment group and which people are a part of the
control group?
b. What regression will you run? Define the variables where required.
c. Suppose you estimate = -0.3. Interpret it.
d. You test for balance using the variables mentioned in the table below. Based on the results do you think that the treatment and control group are balanced? If your answer is “yes” then explain why. If your answer is “no”, then explain why and mention how will you address the issue of imbalance.
e. Suppose that some unmotivated students in the control group decided to drop out of the university. Is this an issue of attrition or non-compliance? Will this cause to be biased? Explain.
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