The Following Estimation Methods Should Not Be Used to Test

question 29

Multiple Choice

The following estimation methods should not be used to test for randomization when Xi,is binary:

• A)linear probability model (OLS)with homoskedasticity-only standard errors.
• B)probit.
• C)logit.
• D)linear probability model (OLS)with heteroskedasticity-robust standard errors.

---

Definitions:

High Set-up Costs

Initial investments or expenses that are necessary to start a business or manufacturing process, which can act as a barrier to entry for new firms.

Industry

A sector of the economy that produces a specific type of goods or services, characterized by shared production processes or products.

Exclusive Right

A legal provision or agreement granting someone the sole authority to use, sell, or license a product, service, or intellectual property.

Military-industrial Complex

The network of government agencies, armed forces, and private industries involved in the production and supply of military materials and technology.