Given the Average Outcomes for the Treated and Control Groups

question 3

Multiple Choice

Given the average outcomes for the treated and control groups, and their respective sample standard deviations, how does the number of observations impact the spread of a confidence interval?

• A) Only increasing the number of treated will decrease the spread of the confidence interval
• B) Only increasing the number of control groups will decrease the spread of the confidence interval
• C) Only increasing the number of treated will increase the spread of the confidence interval
• D) None of the answers is correct.

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Definitions:

Number of Firms

Refers to the total quantity of individual businesses operating within a particular industry or market.

Price of Inputs

The cost of the resources used in the production of goods and services.

Price of Labor

The compensation, including wages and benefits, that employers provide to workers in exchange for their labor services.

Mozzarella Cheese

A soft, white cheese originally from Italy, commonly used on pizzas and in various dishes.