Suppose an Empirical Researcher Is Interested in Analyzing the Impact

question 3

Multiple Choice

Suppose an empirical researcher is interested in analyzing the impact of restricting HMO membership on insurance rates among workers.The researcher noticed that one state passed a law that restricted HMO membership and an otherwise similar state did not pass such a law.Which empirical approach would be best suited to this analysis?

• A) time series analysis
• B) cross-sectional regression analysis
• C) a quasi-experiment
• D) a random trial

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Definitions:

Operating Expenses

The costs of running your business, including your rent, utilities, administration, marketing/advertising, employee salaries, and so on.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Short-Term Portion of Long-Term Debt

The part of a company's long-term debt that is due to be paid within the following twelve months.

5-Year Bank Loan

A financial agreement where a bank lends money to a borrower, to be repaid with interest over a period of five years.