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Randomized study estimates effect of pill on income

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I randomly assign people to take a pill which I claim will increase intelligence, and therefore income. Running a regression in the data, I estimate that E(ln(income)|pill) = 7.3 + .06pill, where pill is a dummy variable equal to 1 if someone was assigned to take the pill. a) In the plainest English possible, what is the estimated effect of taking the pill on income? b) Suppose that the values 7.3 and .06 come with standard errors of .7 and .02, respectively. What is the plausible range of effects of taking the pill on income?.

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I randomly assign people to take a pill which I claim will increase intelligence, and therefore income. Running a regression in the data, I estimate that E(ln(income)|pill) = 7.3 + .06pill, where pill is a dummy variable equal to 1 if someone was assigned to take the pill. a) In the plainest English possible, what is the estimated effect of taking the pill on income? b) Suppose that the values 7.3 and .06 come with standard errors of .7 and .02, respectively. What is the plausible range of effects of taking the pill on income?

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Randomized study estimates effect of pill on income

  • 1. I randomly assign people to take a pill which I claim will increase intelligence, and therefore income. Running a regression in the data, I estimate that E(ln(income)|pill) = 7.3 + .06pill, where pill is a dummy variable equal to 1 if someone was assigned to take the pill. a) In the plainest English possible, what is the estimated effect of taking the pill on income? b) Suppose that the values 7.3 and .06 come with standard errors of .7 and .02, respectively. What is the plausible range of effects of taking the pill on income?