You want to run a difference-in-difference experiment with a price increase for your lawn chairs in Miami,FL.If you are worried about the "representativeness" of your control group,a good comparison city would be
A)Boston,MA
B)San Francisco,CA
C)St.Paul,MN
D)Tampa Bay,FL

Question

You want to run a difference-in-difference experiment with a price increase for your lawn chairs in Miami,FL.If you are worried about the "representativeness" of your control group,a good comparison city would be
A)​Boston,MA
B)San Francisco,CA
C)St.Paul,MN
D)​Tampa Bay,FL

Quizplus · Accepted Answer

A good comparison city for a price increase on lawn chairs in Miami, FL would be another city in Florida to control for regional factors such as weather, consumer preferences, and competitive environment. St. Paul, MN is too far away and not geographically comparable, while Boston, MA and San Francisco, CA are in different regions with different economic and demographic characteristics. Therefore, Tampa Bay, FL is the closest and most suitable comparison city for this experiment.

You Want to Run a Difference-In-Difference Experiment with a Price