Testing for the random receipt of treatment
A)is not possible,in general.
B)entails testing the hypothesis that the coefficients on W1i,…,Wri are non-zero in a regression of Xi on W1i,…,Wr.
C)is not meaningful since the LHS variable is binary.
D)entails testing the hypothesis that the coefficients on W1i,…,Wri are zero in a regression of Xi on W1i,…,Wr.

Question

Quizplus · Accepted Answer

Testing for the random receipt of treatment involves testing the hypothesis that the coefficients on the treatment variables (W1i,…,Wri) are equal to zero in a regression of the outcome variable (Xi) on the treatment variables (W1i,…,Wri). This is because if treatment is randomly assigned, then the treatment variables should not be related to the outcome variable. Therefore, the null hypothesis of the regression should be that the coefficients on the treatment variables are zero.

Testing for the Random Receipt of Treatment