consider a simple regression model y1=β1+β2di+ei,with indicator variable di=1 if in individual is in treatment group,...

consider a simple regression model y1=β1+β2di+ei,with indicator variable di=1 if in individual is in treatment group, and di =0 if in individual is in control group.Proof least squares estimator of β2 satisfies b2=y1-y0, where y1=Σyi/N1 iS the sample mean of the N1 obsevations on y for the treatment group, y0=Σyi/N0, is the sample mean of the N0 observations on y for the control group

Expert Solution

For calculations in between, please look into the last part to get help.

orchestra answered 2 years ago

Question 1: Consider the simple regression model: !Yi = β0 + β1Xi + ei (a) Explain...

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