The following estimation methods should not be used to test for randomization when X_i, 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.

Question

Quizplus · Accepted Answer

The linear probability model (OLS) with homoskedasticity-only standard errors is not appropriate for binary outcomes because it assumes constant variance, which is not the case with binary data. This can lead to incorrect standard errors and inference.

The Following Estimation Methods Should Not Be Used to Test