5.2 Randomization & independence

  • Take the table from before.. now imagine you randomly assign values of Di
    • Randomization “breaks” any connection between Di and Xi [and Yi1/Yi0] (induces independence)
    • e.g., no self-selection into treatment/control
    • (Yi is observed after realization of Di)
Unit Di Xi (Gender) Yi Yi1 Yi0
Simone 1 0 0 0 ?
Julia 1 1 1 1 ?
Paul 0 0 1 ? 1
Trump 0 0 0 ? 0
Fabrizio 0 0 0 ? 0
Diego 0 0 0 ? 0