Let’s say we run a randomized control trial and find a positive… Let’s say we run a randomized control trial and find a positive difference in means between the treatment group and the control group. However, suppose that the true treatment effect is t=0, that is, the treatment has no effect what-so-ever. How could these two things both be true? (No true treatment effect, but a positive difference in means between treatment and control). Assume the randomization and experiment was done properly. Business Economics ECO 204
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