1. Provide short responses not more half a page to the questions below. (3 MARKS EACH) a. What is the difference between Prospective and Retrospective Evaluation? b. With the aid of the equation below, explain the fundamental problem of causal Inference in impact evaluation. Yi=DiYiT+(1Di)YiC c. Figure 1 depicts the impact of a development intervention on a treated group. What would be the expected outcome for the treatment group at time 1 in absence of treatment in a Difference-in-Difference (DiD) design? Examiners: Dr. E. Asiedu and Prof. K. Doku-Amponsah Page 3 of 5 d. What could be a problem with Propensity Score Matching (PSM) that leads to bias in the estimation of the Average Treatment Effect of an intervention? e. With random assignment, if the difference in outcomes between treatment and control groups before intervention is zero, then the treatment effect is zero. True/False, Explain. f. If the treatment effect is zero, then the randomization did not work properly. True/False, Explain