Ans: D) entails testing the hypothesis that the coefficients on W1i, …, Wri are zero in a regression of Xi on W1i, …, Wr.
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.
Economics
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