Suppose You Estimate the Effect of a Treatment Using a Cross-Sectional

question 34

Multiple Choice

Suppose you estimate the effect of a treatment using a cross-sectional regression analysis as 10 while the true effect is 15.The difference of 5 represents which of the following?

• A) measurement error
• B) bias
• C) small sample error
• D) difference-in-difference estimation

---

Definitions:

Absorption Costing

A costing method that includes all manufacturing costs, both fixed and variable, in the cost of a product.

Variable Costing

An accounting method that includes only variable production costs (costs that change with the level of output) in the cost of goods sold, highlighting the impact of production volume on profitability.

Variable Costing

An accounting method that includes only variable costs—costs that change with production levels—in the cost of production.

Absorption Costing Reports

A financial document that includes all the manufacturing costs associated with the production of goods, both variable and fixed costs.