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ECON 140 (ECONOMETRICS) EXAM 2025 WITH 100% ACCURATE SOLUTIONS
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OLS formula – Answer️☑️Yi = B0 + B1(Xi) + gamma(Ci) + Ei 
 
 
 
** what’s gamma and Ci ??? 
 
 
 
OLS assumptions – Answer️☑️-without the treatment, the treatment and control group would have had the same outcome 
 
 
 
OLS assumtion: formula – Answer️☑️Cov(Xi, Ei) = 0 
 
E[Yi(0)|Ti=1] = E[Yi(0)|Ti=0] 
 
 
 
Yi(0) {outcome of treatment group in absense of treatment} would have been the same for Ti=1 and Ti=0 groups 
 
 
 
OLS dangers – Answer️☑️-OVB 
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