Which of the Following Must Be Undertaken When the Treatment

question 10

Multiple Choice

Which of the following must be undertaken when the treatment and control groups differ with regard to some independent variable, X1.

• A) Run an intention-to-treat analysis
• B) Run a 2SLS model where the instrument is the random assignment
• C) Use multivariate OLS and control for X1.
• D) Restart the experiment and pick a new randomized sample.

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Definitions:

Producer Surplus

The variance between the price producers want to sell an item for and the price they end up receiving.

Equilibrium Price

The price point at which the quantity of a good or service supplied equals the quantity demanded.

Consumer Surplus

The disparity in what consumers are willing to invest in a good or service compared to what they eventually invest.

Demand Shifts

Occur when external factors lead to a change in the amount of a product or service that consumers are willing and able to buy at a given price, resulting in the demand curve moving rightward or leftward.