In a Dichotomous Regression All of the Following Conditions Must

question 25

Multiple Choice

In a dichotomous regression all of the following conditions must hold except for what?

• A) The sum of residuals for the treated group must equal zero.
• B) The sum of residuals for the untreated group must equal zero.
• C) An equal number of positive and negative residuals.
• D) The regression line must go through the mean of the outcomes for the treated.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at set prices.

Absolute Value

The distance of a number from zero on the number line, without considering direction.

Money Income

Refers to the total amount of monetary income received by an individual or household over a certain period of time, including wages, salaries, bonuses, and any other income in cash forms.

Factors of Production

The resources used in the production of goods and services, typically categorized into land, labor, capital, and entrepreneurship.