Question: Stuck on these...possible for some help? Thank you! Question 4 4. The celebrity draws an odd-numbered ticket. As a result of the drawing, 300 individuals

 Stuck on these...possible for some help? Thank you! Question 4 4.

Stuck on these...possible for some help? Thank you!

Question 4 4. The celebrity draws an odd-numbered ticket. As a result of the drawing, 300 individuals with odd-numbered tickets are offered the chance to get a loan at planting time. The other 300 individuals with even-numbered tickets serve as the control group. After the randomization, the researcher observes that 250 of the 300 treatment individuals actually took up (i.e. accepted) the loan. In addition, 30 of the 300 control individuals took up a loan on their own from a different source. After 6 months, the researcher collects data on yields for the 600 sampled individuals (i... both the treatment and control farmers). Mean yields by group are as follows: a. [7 points] The researcher compares the average yields of all the farmers in the treatment group and all the farmers in the control group, and notices that yields for treatment farmers are 12.5kg/ha(18.5%) greater than the yields of control group farmers. Explain how to interpret this number. Is this the causal estimate of the impact of loans on yields? Why or why not? (If not, is this likely to be an overestimate or an underestimate? Explain) b. [4 points] The researcher also notes that, regardless of treatment group, farmers who took a loan had 22.1kg/ha(33%) higher yields than farmers who did not take a loan. As in part (a), explain how to interpret this number. c. [5 points] Compare the two estimates in parts (a) and (b). Which do you think provides the most reliable estimate of the causal impact of a planting time loan on the yields of Tanzanian maize farmers? Why? Be specific! Question 4 4. The celebrity draws an odd-numbered ticket. As a result of the drawing, 300 individuals with odd-numbered tickets are offered the chance to get a loan at planting time. The other 300 individuals with even-numbered tickets serve as the control group. After the randomization, the researcher observes that 250 of the 300 treatment individuals actually took up (i.e. accepted) the loan. In addition, 30 of the 300 control individuals took up a loan on their own from a different source. After 6 months, the researcher collects data on yields for the 600 sampled individuals (i... both the treatment and control farmers). Mean yields by group are as follows: a. [7 points] The researcher compares the average yields of all the farmers in the treatment group and all the farmers in the control group, and notices that yields for treatment farmers are 12.5kg/ha(18.5%) greater than the yields of control group farmers. Explain how to interpret this number. Is this the causal estimate of the impact of loans on yields? Why or why not? (If not, is this likely to be an overestimate or an underestimate? Explain) b. [4 points] The researcher also notes that, regardless of treatment group, farmers who took a loan had 22.1kg/ha(33%) higher yields than farmers who did not take a loan. As in part (a), explain how to interpret this number. c. [5 points] Compare the two estimates in parts (a) and (b). Which do you think provides the most reliable estimate of the causal impact of a planting time loan on the yields of Tanzanian maize farmers? Why? Be specific

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