Assignment Task
Task
1 We want to test the effectiveness of giving teenagers cash incentives to discourage them from smoking. A random sample of teenagers in the US and a random sample teenagers in the UK are recruited for the study. In each country, we have a randomized controlled study. We count the number of people who smokes at least once during the last month of the two-year study period (smoker) and the number of people who did not smoke during the last month (non-smoker). The numbeis are summarized in Tables 1 and 2. Treatment Non-Smoker 152 Smoker 5 Treatment Non-Smoker 581 Smoker 350 Control 2362 122 Control 2278 1979
Table 1: US Table 2: UK
(a) (5 points) Paiticipants are randoinly assigned to the treatment group and the control group. Why do we have to do random assignment? (b) (5 points) The goal of the cash incentives is to reduce the chances of being a smoker (i.e., smoking rate). What is the estimated average treatment effect it the US (i.e., conditional on being in the US)? What is the estimated average treatment effect in the UK? (c) (5 points) What is the estimated overall average treatment effect?
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