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In the Context of a Controlled Experiment, Consider the Simple Yi=β0+β1Xi+ui. Let the YiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i } \text {. Let the } Y _ {i}

Question 14

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In the context of a controlled experiment, consider the simple linear regression formulation Yi=β0+β1Xi+ui. Let the YiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i } \text {. Let the } Y _ {i} be the outcome, XiX _ { \mathrm { i } } the treatment level, and uiu _ { i } contain all the additional determinants of the outcome. Then


A) the OLS estimator of the slope will be inconsistent in the case of a randomly assigned XiX _ { i } since there are omitted variables present.
B) Xj and uiX _ { \mathrm { j } } \text { and } u _ { \mathrm { i } } will be independently distributed if the XiX _ { \mathrm { i } } be are randomly assigned.
C) β0\beta _ { 0 } represents the causal effect of X on Y when X is zero.
D) E(YX=0) E ( Y \mid X = 0 ) is the expected value for the treatment group.

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