The Following Are Reasons for Studying Randomized Controlled Experiment in an Econometrics

question 19

Multiple Choice

The following are reasons for studying randomized controlled experiment in an econometrics course, with the exception of

• A)at a conceptual level, the notion of an ideal randomized controlled experiment provides a benchmark against which to judge estimates of causal effects in practice.
• B)when experiments are actually conducted, their results can be very influential, so it is important to understand the limitations and threats to validity of actual experiments as well as their strength.
• C)randomized controlled experiments in economics are common.
• D)external circumstances sometimes produce what appears to be randomization.

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Definitions:

Annuities Due

An annuity for which the payment is due at the beginning of each period instead of at the end, often used in lease agreements and insurance premiums.

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Financial value of an asset or cash set for a future date, equivalent to a fixed present sum.

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A financial instrument that provides a consistent series of payments to a person, often utilized in planning for retirement.