The Following Are Reasons for Studying Randomized Controlled Experiment in an Econometrics

question 21

Multiple Choice

The following are reasons for studying randomized controlled experiment in an econometrics course, with the exception of

• A)at a conceptual level, the notion of an ideal randomized controlled experiment provides a benchmark against which to judge estimates of causal effects in
• Practice.
• B)when experiments are actually conducted, their results can be very influential, so it is important to understand the limitations and threats to validity of actual
• Experiments as well as their strength.
• C)randomized controlled experiments in economics are common.
• D)external circumstances sometimes produce what appears to be randomization.

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Definitions:

Reorder Point

The inventory level at which an order should be placed to replenish stock before it runs out, based on lead time and demand.

Average Usage

The mean amount of a resource or service consumed over a specific period, used for planning and analysis purposes.

Safety Stock

Inventory kept on hand to protect against stockouts, typically to address unpredictable demand or uncertainties in the supply chain.

Lead Time

The total time it takes for a process to be completed from the moment it is initiated until its conclusion, often critical in supply chain management.