Question
A local Birmingham-area restaurant chain introduced a new summer menu in its Vestavia Hills location, but not its Mountain Brook location.Nightly revenue averaged $6,000 in
A local Birmingham-area restaurant chain introduced a new summer menu in its Vestavia Hills location, but not its Mountain Brook location.Nightly revenue averaged $6,000 in Vestavia Hills and $4,000 in Mountain Brook before the menu change, but $7,000 in Vestavia Hills and $3,000 in Mountain Brook after the menu change.The difference-in-difference estimate of the increase in average nightly revenue attributable to the menu change is
A. $4,000.
B. $0.
C. $1,000.
D. $2,000.
In the previous question, the increase in average nightly revenue attributable to summer, rather than the menu change, is
A. $2,000.
B. $0.
C. -$1,000.
D. $1,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started