Given Y_it= B₀+ B₁Treated_i+ B2After_t+ B3(Treated_i*After_t) + e_it, the expected value of the dependent variable for those who in the control group after the treatment was administered is: A) B0+B1+B2+B3 B) B0+B1+B3 C) B0+B1 D) B0+B2

Question

Quizplus · Accepted Answer

The correct interpretation of the equation given is that B0 is the baseline, B1 is the effect of being in the treatment group before the treatment, B2 is the effect of being in the control group after the treatment, and B3 is the additional effect on the treatment group after the treatment. Since the question asks for the expected value for the control group after the treatment, only B0 and B2 are relevant, making the correct answer B0+B2.

Given Yit = B0 + B1Treatedi + B2Aftert + B3(Treatedi*Aftert)

Given Y_it= B₀+ B₁Treated_i+ B2After_t+ B3(Treated_i*After_t)