Suppose Fresno Technologies, a extended reality headsets manufacturer, wants to run an difference-in-difference estimation to quantify how well their new production process is working. There are two production lines: Line A and Line B. Line A receives the treatment (i.e., uses the new process). Production data is summarized below for before and after the application of the process. LineQuantity before TreatmentQuantity after Treatment(in units)(in units)Line A21002600Line B15001320 Calculate two difference estimates of difference-in-difference. First, an estimate in units. Second, an estimate in percentage. The first estimate is taking the difference of each line before and after the treatment, and then finding the difference between those differences. The second estimate is taking the percentage change in each line and then finding the difference between the percentage changes. The difference-in-difference estimate of the effect of the new production process is ? extended reality headsets. In percentage terms, the estimate is approximately a: 35.81% b: -35.81% c. -45.33%
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Suppose Fresno Technologies, a extended reality headsets manufacturer, wants to run an difference-in-difference estimation to quantify how well their new production process is working. There are two production lines: Line A and Line B. Line A receives the treatment (i.e., uses the new process). Production data is summarized below for before and after the application of the process.
LineQuantity before TreatmentQuantity after Treatment(in units)(in units)Line A21002600Line B15001320
Calculate two difference estimates of difference-in-difference. First, an estimate in units. Second, an estimate in percentage. The first estimate is taking the difference of each line before and after the treatment, and then finding the difference between those differences. The second estimate is taking the percentage change in each line and then finding the difference between the percentage changes.
The difference-in-difference estimate of the effect of the new production process is ? extended reality headsets. In percentage terms, the estimate is approximately
a: 35.81%
b: -35.81%
c. -45.33%
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