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A Paradoxical Result in Estimating Regression Coefficients
Thaddeus Tarpey1, R Todd Ogden2, Eva Petkova3
1Professor in the Department of Mathematics and Statistics, Wright State University, Day-ton, Ohio 45435.
Abstract:
This paper presents a counterintuitive result regarding the estimation of a regression slope co-efficient. Paradoxically, the precision of the slope estimator can deteriorate when additional information is used to estimate its value. In a randomized experiment, the distribution of baseline variables should be identical across treatments due to randomization. The motivation for this paper came from noting that the precision of slope estimators deteriorated when pooling baseline predictors across treatment groups.
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