Question

(A) Mean outcome for control group (TT=0) = 0.05

(B) Mean outcome for treatment group (TT=1) = 0.06
(C) State your simple difference estimator by solving the formula below = 0.01
SDO = (answer B in 2dp) - (answer A in 2dp)
Briefly explain the SDO value

Answer 1

The simple difference estimator (SDO) is calculated by subtracting the mean outcome for the control group from the mean outcome for the treatment group. In this case, the SDO is 0.01. It represents the difference in mean outcomes between the treatment and control groups.

Step-by-step explanation:

The simple difference estimator (SDO) is calculated by subtracting the mean outcome for the control group from the mean outcome for the treatment group. In this case, the SDO is 0.06 - 0.05 = 0.01. The SDO represents the difference in mean outcomes between the treatment and control groups. In this context, a SDO of 0.01 means that, on average, the treatment group had a 0.01 higher outcome compared to the control group.