You want to run a difference-in-difference experiment with a price increase for the bacon cheeseburger item on your menu.If you are worried about the "representativeness" with your control group,a poor comparison menu item would be
A)soft drink sales
B)the bacon burger without cheese
C)the bacon-lettuce-and-tomato sandwich
D)the regular cheeseburger

Question

You want to run a difference-in-difference experiment with a price increase for the bacon cheeseburger item on your menu.If you are worried about the "representativeness" with your control group,a poor comparison menu item would be
A)​soft drink sales
B)the bacon burger without cheese
C)the bacon-lettuce-and-tomato sandwich
D)​the regular cheeseburger

Quizplus · Accepted Answer

Soft drink sales are a poor comparison for a bacon cheeseburger price increase experiment due to their different product categories. Food items, especially those closely related to the test item like other burgers, are more representative controls than beverages.

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