Identifying the Causal Effects of a Policy by Looking at Two

question 27

Multiple Choice

Identifying the causal effects of a policy by looking at two samples that lie on either side of a threshold is called

• A) difference-in-differences.
• B) statistical significance.
• C) regression discontinuity.
• D) intention to treat.

Understand the principles and conditions necessary for conducting inferential statistical tests.

Calculate and interpret confidence intervals for means and proportions.

Understand the assumptions underlying different statistical tests and when they are met.

Recognize and apply the appropriate statistical test for different types of data and research questions.

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Definitions:

Opportunity Cost

The economic consequence of not opting for the immediate secondary option when a decision is made.

Salvage Value

An approximation of an asset's value at the conclusion of its effective lifespan.

Erosion Cost

The gradual loss of asset value due to factors like wear, tear, and technological obsolescence, affecting long-term profitability.

Depreciation

The planned apportionment of the price of a tangible asset across its operational lifetime.