Which one of the following is a key assumption in regression discontinuity models?
A) The cutoff is random
B) The error term jumps at the cutoff
C) The error term is continuous and does not jump at the cutoff
D) The assignment variable is uncorrelated with the error term

Question

Quizplus · Accepted Answer

The key assumption in regression discontinuity models is that the error term is continuous and does not jump at the cutoff. This ensures that any discontinuity in the outcome variable at the cutoff can be attributed to the treatment effect rather than changes in the error term.

Which One of the Following Is a Key Assumption in Regression