Question: Topic : Establishing Causal Interference Question: 2. Suppose you assumed the following data-generating process for Y: Yi = + 1 Ti + 2 X1i +

Topic : Establishing Causal Interference

Question: 2. Suppose you assumed the following data-generating process for

Y: Yi = + 1 Ti + 2 X1i + 3 X2i + 4 X 3i + Ui. Suppose further that the population regression equation for

T is: Ti = A + B1 X1i + B2 X2i + B3 Zi + Vi

where A, B1 , B2 , B3 are all > 0. If you regressed Y on T only, which of the variables X1 , X2 , X3 , and Z are likely to be confounding factors in your attempt to measure the effect of T on Y?

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