Question 3 1 pts If the Treated group has an average outcome of 5 before treatment and 9 after, and the Untreated group has an average outcome of 4 before treatment and 7 after, what is the difference-in-difference estimate of the effect of treatment? Question 4 1 pts Which of the following is closest to the intuition behind why DID works? O The before-after difference for Treated shows the effect of treamtment plus the effect of time, and subtracting out the before after difference for Control subtracts out the time effect. O By selecting a Treatment and Control group, treatment is effectively randomly assigned, closing all back doors and solving the endogeneity problem O The before after difference in the Treated group shows the effect of treatment unless the Control group also has a significant change O Because of the settings that DID is applied in, removing within variation for both groups controls for everything that needs to be controlled forQuestion 5 1 pts Which of the following best describes the parallel trends assumption? O Any change in the outcome variable gap between Treated and Untreated groups that happens when the treatment goes into effect can only be because of the treatment ONeither the Treated nor Untreated groups should have trends sloping upwards or downwards before the treatment goes into effect O There should be no change in the outcome-variable gap between Treated and Untreated groups in any of the post-treatment periods, compared to other post-treatment periods O The Treated and Untreated groups must have similar trends in their outcome variable before the treatment goes into effectQuestion 6 1 pts You are interested in the effect of military spending on the economy. You notice that, when the United States entered World War II in 1941 right after Pearl Harbor, US military spending jumped much more than Mexican military spending So, your plan is to use the US as the Treated group and Mexico as the Control group, comparing the performance of their economies before Pearl Harbor and after Pearl Harbor. Is this a good difference-in-difference design? Does it seem likely that parallel trends holds? Why or why not? Be specific. Edit View Insert Format Tools Table Bpt v Paragraph BIUADV p 1 0words > >