Randomization Based on Covariates Is

question 37

Multiple Choice

Randomization based on covariates is

• A)not of practical importance since individuals are hardly ever assigned in this fashion.
• B)dependent on the covariances of the error term (serial correlation).
• C)a randomization in which the probability of assignment to the treatment group depends on one of more observable variables W.
• D)eliminates the omitted variable bias when using the difference estimator based on Y_i = β₀ + β₁X_i + u_i, where Y is the outcome variable and X is the treatment indicator.

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.

ROE

Return on Equity - a financial ratio that measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Profit Margin

Profit margin is a financial metric that measures the percentage of profit a company retains after subtracting its costs from its revenue, reflecting the overall profitability of the business.