Asked by Ayanna Curtis on Sep 24, 2024
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The manager of an ice-cream parlor decides to introduce a new ice-cream flavor in his Dallas,TX based restaurants to compare the sales of these restaurants to the ones with no new flavors.She decides to run a difference in difference approach.Which of the following is true?
A) The first difference would be the difference in the sales of the Dallas stores before and after the introduction
B) The second difference would be the difference in the sales in other stores before and after the Dallas stores introduced the new flavor
C) The second difference would be the difference between the post introduction sales in the Dallas stores and the control group
D) Only A&B
Difference Approach
A method used in various fields to understand or analyze differences between entities or phenomena, often to derive specific conclusions or solutions.
Dallas Stores
Retail outlets or branches located in Dallas, typically referring to their specific performance, strategies, or relevancy in market analysis.
Control Group
in experimental research, is a group of subjects that does not receive the treatment or intervention being tested, serving as a baseline to compare the effects of the treatment on the experimental group.
- Understand the difference-in-difference approach and its application in comparing performance metrics across different conditions or time periods.
- Identify the considerations of representativeness and leakage in experimental design and their implications.
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Learning Objectives
- Understand the difference-in-difference approach and its application in comparing performance metrics across different conditions or time periods.
- Identify the considerations of representativeness and leakage in experimental design and their implications.
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