Reference no: EM133066316

To assess the efficacy of modest financial incentives, measured by the indicator variable (Di), on immunization rates (Ii) among children, use the following experimental data: 

	1	2	3	4
D (observed)	1	0	1	0
Y (observed)	0.9	0.3	0.7	0.1
D(hypothetical)	0	1	0	1
Y(hypothetical)	0.6	0.8	0.2	0.4

(a) Causal effect:

1. Define the causal effect using appropriate mathematical notation. 

2. Interpret each of the two terms in the causal effect by specifying the relevant group, the state of nature, and the outcome of interest.

3. Describe what the two terms of the causal effect are comparing.