Why Treatment Assignment and Potential Outcomes Are Not Independent in Observational Studies ?
Step-by-Step Explanation: 1. What Are Potential Outcomes? In causal inference , for each individual we define two potential outcomes : Y ( 0 ) Y(0) : the outcome the person would have if they did not receive the treatment. Y ( 1 ) Y(1) : the outcome the person would have if they did receive the treatment. 📌 These are hypothetical — for each person, we only get to observe one of them in real life (depending on their treatment assignment). 2. What Is T T ? T T is the treatment assignment : T = 1 T = 1 : treated T = 0 T = 0 : control (not treated) 3. What Does "Not Independent" Mean? Saying that the potential outcomes ( Y ( 0 ) , Y ( 1 ) ) and T T are not independent means: The likelihood of receiving treatment depends on something that also affects the outcome . In math: ( Y ( 0 ) , Y ( 1 ))⊥T That is: the treatment assignment is related to the outcome you’d have had with or without treatment. 4. 🔄 Why Is...