In the Context of a Controlled Experiment,consider the Simple Linear

question 23

Multiple Choice

In the context of a controlled experiment,consider the simple linear regression formulation Yi = β0 + β1Xi + ui.Let the Yi be the outcome,Xi the treatment level,and ui contain all the additional determinants of the outcome.Then

• A)the OLS estimator of the slope will be inconsistent in the case of a randomly assigned Xi since there are omitted variables present.
• B)Xi and ui will be independently distributed if the Xi be are randomly assigned.
• C)β0 represents the causal effect of X on Y when X is zero.
• D)E(Y X = 0)is the expected value for the treatment group.

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Definitions:

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