UC DavisDalia GhanemARE 107 Assignment 1Due January 26, 2020Late Assignments Not Accepted Instructions.This is a group assignment. You have to work with your assigned group. However,each group member has to hand in their own individual write-up to the answers to all questions.Copying and pasting answers, even from your group members, is considered plagiarism.In addition to the write-up, you have to include the R programs you use for the computational components.

The problem sets are meant to help you understand the material. If you have any questions,please come to the instructor or TAs.Note: Some of the problems here are from www.mastering metrics.com.I.

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Which of the following terms correctly defines the estimates presented in columns
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Consider the following in-class exercises:- Exercise 2 in Lecture 2- Exercise 2 in Lecture 3- Exercise 3 in Lecture 3- Exercise 5 in Lecture 4Present your answer to each of the four exercises listed above and explain in words how you derived each of the results.II. Table 1.5 in Mastering ‘Metrics presents the results for different outcomes from the Oregon Health Plan experiment.

(a) Explain the estimates presented in columns (1)-(4) in words

.(b) Which of the following terms correctly defines the estimates presented in columns

(1)-(4)given an out comeYi,- ̄Y0 °n0i 1Yi{n0, where individualsi 1, . . . , n0constitute the subsample of individ-uals without the treatment- ̄Y1 °n1j 1Yj{n1, where individualsj 1, . . . , n1constitute the subsample of individ-uals with the treatment1- ̄Y1 ̄Y0- s.e.( ̄Y0)- s.e.( ̄Y1)- s.e.( ̄Y1 ̄Y0)wheres.e.denotes the standard error of the estimator in the parentheses.

1A more precise way to define ̄Y0and ̄Y1is ̄Y0 °ni 1Yip1 Diq{°ni 1p1 Diqand ̄Y1 °ni 1YiDi{°ni 1Di,whereDiequals one if an individual has the treatment and zero otherwise. Note thatn n0

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