Table 1.
Simulation | logit E[Y|A, W] | Ψ (P0) | P0(b0(W) = 0) | P0(b0(W) < 0) |
---|---|---|---|---|
N1 | W1 + W2 | 0 | l | 0 |
N2 | −0.2A[(W1 – z0.8)+]2 | 0 | 0.80 | 0.20 |
N3 | −0.25A | 0 | 0 | l |
A1 | 0.8A | 0.19 | 0 | 0 |
A2 | 0.06 | 0.25 | 0.38 | |
A3 | AW1 | 0.09 | 0 | 0.50 |
Note: Decimals rounded to the nearest hundredth. For N2, z0.8 ≈ 0.84 is the 80th percentile of a standard normal distribution. We use x+ to denote the positive part of a real number x.