Testing for the random receipt of treatment A)is not possible, in general. B)entails testing the hypothesis that the coefficients on W_1i, …, W_ri are non-zero in a regression of X_i on W_1i, …, W_r. C)is not meaningful since the LHS variable is binary. D)entails testing the hypothesis that the coefficients on W_1i, …, W_ri are zero in a regression of X_i on W_1i, …, W_r.

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Quizplus · Accepted Answer

Testing for the random receipt of treatment entails testing the hypothesis that the coefficients on the treatment indicators (W_1i, …, W_ri) are zero in a regression of the outcome variable (X_i) on the treatment indicators. This is because if the treatment is randomly assigned, then the treatment indicators should not be systematically related to the outcome variable, and their coefficients should be zero in the regression.

Testing for the Random Receipt of Treatment