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You Experiment by Offering Free Warranties for Your Product in Market

Question 16

Multiple Choice

You experiment by offering free warranties for your product in market A but not in market B.Sales in A rise from 240 to 360 units per week while sales in B rise from 410 to 430.The Difference-in-difference estimate of the effect of the free warranty is:


A) ​80 units
B) 100 units
C) 120 units
D) ​140 units

Correct Answer:

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