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Attempts I I Average i 3 7. Difference-in-Difference Suppose Alameda Automation, a robots manufacturer, wants to run an difference-in-dlfference estimation to quantify how well their
Attempts I I Average i 3 7. Difference-in-Difference Suppose Alameda Automation, a robots manufacturer, wants to run an difference-in-dlfference estimation to quantify how well their new production process is working. There are two production lines: Line A and Line E5. Line A receives the treatment (i.e., uses the new process). Production data is summarized below for before and after the application of the process. Quantity before Treatment Quantity after Treatment Line (in units) (in units) Line A 2100 2600 Line B 1500 1320 Caicuiate two difference estimates of difference-in-difference. First, an estimate in units. Second, an estimate in percentage. The first estimate is taking the difference of each iine before and after the treatment, and then nding the difference between those differences. The second estimate is taking the percentage change in each line and then finding the difference between the percentage changes. The difference-in-difference estimate of the effect of the new production process is :l robots. In percentage terms, the estimate is approximately '7
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