Question: Why is data generated by an experiment, in which the treatment (the variable of interest) is randomly assigned, better than observational data, in which the
Why is data generated by an experiment, in which the treatment (the variable of interest) is randomly assigned, better than observational data, in which the variable of interest is individually chosen? Question 14 options: Assumption MLR.4 (zero conditional mean) holds for the experiment regardless of which other independent variables are included Assumption MLR.1 (linear in parameters) is guaranteed to hold if the data is generated by an experiment Assumption MLR.3 (no perfect collinearity) will hold for the experiment, but not necessarily for observational data. It is not possible to obtain causal estimates when using observational data
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