Explain Regression Discontinuity Design and propose a real-world scenario
WHAT IT TESTS: Causal inference via sharp cutoffs when randomization is impossible. ANSWER OUTLINE: Compare units just above and below a threshold for local effects; propose scenario with forcing variable. RED FLAG: Calling it randomized or ignoring bandwidth.
WHAT IT TESTS: Your ability to exploit sharp cutoffs for causal inference when randomization is impossible. ANSWER OUTLINE: Define RDD as comparing observations immediately on either side of a threshold to estimate local treatment effects; propose a concrete real-world scenario like scholarship eligibility based on a test score cutoff; mention bandwidth choice and checking for manipulation around the cutoff. RED FLAG: Confusing RDD with a randomized trial, ignoring bandwidth, or generalizing beyond the cutoff.
Read the original → Wikipedia: Regression discontinuity design
- #causal inference
- #quasi-experiment
- #econometrics
- #data science
- #senior
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