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Provide detailed step-by-step solutions 2. Consider two periods and a treatment intervention (for some subpopulation) between the two periods. Y is the (continuous) outcome variable

Provide detailed step-by-step solutions

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2. Consider two periods and a treatment intervention (for some subpopulation) between the two periods. Y is the (continuous) outcome variable if the observation is after the treatment A is a period indicator: A = 1 if the observation is before the treatment D is a treated group indicator: D = 1 if the observation is from the group of treated individuals 0 if the observation is from the group of untreated individuals Consider the following model: Y = at B . At y . D+ 8 . A . D + E where a, B, 7, 6 are parameters and & is the error term. Suppose that the mean of & conditional on A and D is zero: E [&|A, D] = 0 What is the d parameter equal to under the above assumption? (Hint: we are looking for an expression with conditional moments.)

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