Enter the mean outcomes for both the treated and control groups into the calculator to determine the Average Treatment Effect (ATE).
Average Treatment Effect Formula
The following formula is used to calculate the Average Treatment Effect (ATE).
ATE = M_t - M_c
Variables:
- M_t is the mean outcome for the treated group
- M_c is the mean outcome for the control group
To calculate the Average Treatment Effect, subtract the mean outcome for the control group from the mean outcome for the treated group.
What is the Average Treatment Effect?
The Average Treatment Effect (ATE) is a measure used in statistics and econometrics to evaluate the impact of a treatment or intervention on a particular outcome. It represents the average difference in outcomes between a group that received the treatment and a group that did not (control group). The ATE is crucial for understanding the effectiveness of policies, medical treatments, and other interventions.
How to Calculate the Average Treatment Effect?
The following steps outline how to calculate the Average Treatment Effect (ATE).
- First, determine the mean outcome for the treated group (M_t).
- Next, determine the mean outcome for the control group (M_c).
- Use the formula ATE = M_t – M_c.
- Finally, calculate the Average Treatment Effect (ATE).
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge.
Mean outcome for the treated group (M_t) = 75
Mean outcome for the control group (M_c) = 65
