Let Y₁_i be the output for factory i when it receives a new machine, and let Y₀_i be the output for factory i when it does not receive a new machine. Also let Y_i be the realized output for factory i and let D_i be a binary variable that equals one if factory i actually received a new machine. If the company's headquarters randomly assigns new machines to a subset of the company's factories, this ensures: A) E(Y_i|D_i = 1) = E(Y₁_i - Y₀_i) B) E(Y_i|D_i = 1) - E(Y_i|D_i = 0) = E(Y₁_i - Y₀_i) C) E(Y_i|D_i = 0) - E(Y_i|D_i = 1) = E(Y₁_i - Y₀_i) D) E(Y_i|D_i = 1) = E(Y_i|D_i = 0)

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Quizplus · Accepted Answer

The Answer is B

Let Y1i Be the Output for Factory I When It

Let Y₁_i Be the Output for Factory I When It