This question evaluates understanding of propensity score matching and causal inference, testing competency in propensity score concepts, matching rationale, essential assumptions (such as unconfoundedness and common support), and diagnostics for covariate balance.
You have observational data with a binary treatment (T ∈ {0,1}), an outcome (Y), and a set of pre-treatment covariates (X). You want to estimate the causal effect of treatment on the outcome while adjusting for confounding.
Hints: Discuss unconfoundedness, common support, caliper, and standardized mean differences (SMD).
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