Answer to Question #213768 in Economics for Meher

Question

The UThere phones are so powerful that they can be used to conduct Parallel Universe surveys which provide (magically) the counterfactuals for the treatment and the control group. From the Parallel Universe surveys, we find out that:

Based on these averages, the true Average Treatment Effect (ATE) and Selection Bias are: [Hint: creating a rationalizable table may help.]

1.    True ATE=250; Selection Bias=0
2.     True ATE=200; Selection Bias=50
3.     True ATE=130; Selection Bias=120
4.     True ATE=125; Selection Bias=125

Answer 1

 True ATE=200; Selection Bias=50