ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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 agendles. Brad proposes a difference-In-difference test in which the budgets for both agencies 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."
True
False
2017-
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Transcribed Image Text: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 agendles. Brad proposes a difference-In-difference test in which the budgets for both agencies 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." True False 2017-
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