The residential division of Prism's high-speed Internet service uses one advertising agency, while its commercial division uses another. Two analysts, Andy and Brad, are asked to test the effectiveness of the two agencies. Andy proposes an A/B test that compares the click-through rates per ad of the two agencies. Brad proposes a difference-In-difference test in which the budgets for both agencles are increased by 50%, and the percentage changes in the click-through rates are compared. True or False: Andy's proposal is more likely than Brad's to suffer from blas due to issues with "representativeness." O True False C
The residential division of Prism's high-speed Internet service uses one advertising agency, while its commercial division uses another. Two analysts, Andy and Brad, are asked to test the effectiveness of the two agencies. Andy proposes an A/B test that compares the click-through rates per ad of the two agencies. Brad proposes a difference-In-difference test in which the budgets for both agencles are increased by 50%, and the percentage changes in the click-through rates are compared. True or False: Andy's proposal is more likely than Brad's to suffer from blas due to issues with "representativeness." O True False C
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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