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:

Sales Decrease

A reduction in the amount of goods or services sold by a business within a specific time period.

Equity Financing

The method of raising capital through the sale of shares, offering investors ownership interests in the company.

Profit Margin

A financial metric that measures the percentage of profit a company retains after deducting its expenses from its total revenue.

Current Liabilities

Financial obligations a company owes and is due within a year.