1d. In HW1 and HW2, you estimated the ATE of Treatment 3. In this HW5, you estimated the ATE conditional on being a below-median water use (1a above)? Which design has greater statistical power: the one for estimating the ATE or the one for estimating the CATE? How do you know? [Hint: You do not need to do any calculations. Use your knowledge of what factors affect statistical power]
2a. Estimate the CATE for above-median water users.
2b. Estimate the standard error of the CATE for above-median water users.
2c. What is the 95% confidence interval of the conditional average treatment effect for above-median water users?
2d. Based on your estimates in 1a and 2a, which subgroup seems to respond most to the Treatment 3 message? I’m just asking you to compare the magnitudes of the two numbers. No statistical test is necessary.
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