If the Assignment Variable Is Correlated with the Error Term

question 18

True/False

If the assignment variable is correlated with the error term, then a RD model will provide a biased estimate of the treatment effect.

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Definitions:

Basic Assumption

A fundamental belief or premise that is accepted as true without proof.

Genuine Assent

An agreement to enter into a contract that is not clouded by factors such as fraud, duress, undue influence, or mistake.

Factual Capacity

The ability of an individual to comprehend facts and circumstances that impact legal responsibilities or rights.

Undue Influence

An improper or wrongful pressure exerted on a person, leading them to act against their will or best interest.