To test for randomization when X_i is binary, A)you regress X_i, on all W's and compute the F-statistic for testing that all the coefficients on the W's are zero. (The W's measure characteristics of individuals, and these are not affected by the treatment.) B)is not possible, since binary variables can only be regressors. C)requires reordering the observations randomly and re-estimating the model. If the coefficients remain the same, then this is evidence of randomization. D)requires seeking external validity for your study.

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To test for randomization when X_i is binary, we can regress X_i on all W's and compute the F-statistic for testing that all the coefficients on the W's are zero. The W's measure characteristics of individuals that are not affected by the treatment, and therefore any differences in their coefficients should be random and not systematic. If the F-statistic is not significant, then it provides evidence that randomization was successful.

To Test for Randomization When Xi Is Binary

To Test for Randomization When X_i Is Binary