To Test for Randomization When X_i Is Binary

question 8

Multiple Choice

To test for randomization when X_i is binary,

• A)you regress X_i, on all W's and compute the F-statistic for testing that all the coefficients on the W's are zero. (The W's measure characteristics of individuals, and these are not affected by the treatment.)
• B)is not possible, since binary variables can only be regressors.
• C)requires reordering the observations randomly and re-estimating the model. If the coefficients remain the same, then this is evidence of randomization.
• D)requires seeking external validity for your study.

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