In a Sharp Regression Discontinuity Design

question 21

Multiple Choice

In a sharp regression discontinuity design,

• A)crossing the threshold influences receipt of the treatment but is not the sole determinant.
• B)the population regression line must be linear above and below the threshold.
• C)X_i will in general be correlated with u_i.
• D)receipt of treatment is entirely determined by whether W exceeds the threshold.

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Definitions:

Aggregate Planning

A process by which a company determines ideal levels of capacity, production, subcontracting, inventory, and labor for medium-term future periods to meet forecasted demand.

Overtime

Additional time worked by an employee beyond the normal or legally defined working hours, usually compensated at a higher pay rate.

Subcontracting

The practice of assigning parts of a project or job to outside companies or specialists to capitalize on efficiency and expertise.

Regular Time

The standard hours that an employee is scheduled to work, excluding overtime or abnormal schedules.