(Solved): I know its not e or f
In the context of a controlled experiment, consider the simple linear regres ...
I know its not e or f
In the context of a controlled experiment, consider the simple linear regression formulation Yi=β0+β1Xi+ui. Let the Yi be the outcome, Xi the treatment level when the treatment is binary, and ui contain all the additional determinants of the outcome. Then β0 : a. is the difference between the sample average outcome of the treatment group and the sample average outcome of the control group. b. is the sample average in the control group. c. does not have an interpretation, since neither Y nor X are in differences. d. is not quite accurate since it is actually the derivative of Y on X. e. All of the above. f. None of the above.
The correct answer is (b) is the sample average in the control group.
The intercept coefficient, B0, represents the expected value of the outcome variable when the treatment variable (X) is equal to zero. In a binary treatment setting, this corresponds to the control group. Therefore, B0 represents the sample average in the control group.