Let Y_1i Be the Output for Factory I When It

question 37

Multiple Choice

Let Y_1i be the output for factory i when it receives a new machine, and let Y_0i be the output for factory i when it does not receive a new machine. Also let Y_i be the realized output for factory i and let D_i be a binary variable that equals one if factory i actually received a new machine. If the company's headquarters randomly assigns new machines to a subset of the company's factories, this ensures:

• A) E(Y_i|D_i = 1) = E(Y_1i - Y_0i)
• B) E(Y_i|D_i = 1) - E(Y_i|D_i = 0) = E(Y_1i - Y_0i)
• C) E(Y_i|D_i = 0) - E(Y_i|D_i = 1) = E(Y_1i - Y_0i)
• D) E(Y_i|D_i = 1) = E(Y_i|D_i = 0)

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Definitions:

Validity

The degree to which a test or instrument measures what it is intended to measure, accurately reflecting the concept it is designed to assess.

Tendency To Help

An inclination or natural propensity in humans to provide assistance or aid to others in need.

Altruism

Unselfish concern for the welfare of others; selflessness.

Reward

A stimulus given to a person or an animal to encourage a particular behavior, reinforcing the behavior's occurrence.