The Manager of an Ice-Cream Parlor Decides to Introduce a New

question 34

Multiple Choice

The manager of an ice-cream parlor decides to introduce a new ice-cream flavor in his Dallas,TX based restaurants to compare the sales of these restaurants to the ones with no new flavors.She decides to run a difference in difference approach.Which of the following is true?

• A)​The first difference would be the difference in the sales of the Dallas stores before and after the introduction
• B)The second difference would be the difference in the sales in other stores before and after the Dallas stores introduced the new flavor
• C)The second difference would be the difference between the post introduction sales in the Dallas stores and the control group
• D)​Only A&B

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