Identifying the Causal Effects of a Policy by Looking at the Average

question 56

Multiple Choice

Identifying the causal effects of a policy by looking at the average change over time in the outcome variable is compared to the average change in a control group is called

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

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Definitions:

Average Collection Period

The average time it takes for a company to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.

Year 2

Refers to the second year of a particular time frame, project, or financial period, often used in forecasting or comparing year-over-year performance.

Acid-Test Ratio

A stringent measure of liquidity that assesses a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Year 2

This term does not have a specific definition without context but generally refers to the second year of a given timeframe, study, or financial period.