To test for randomization when Xi is binary,
A)you regress Xi,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.

Question

Quizplus · Accepted Answer

When Xi is binary, testing for randomization can be done by regressing Xi on all W's and computing 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 thus, should not be correlated with the treatment assignment. If the F-statistic is not statistically significant, this is evidence of randomization.

To Test for Randomization When Xi Is Binary