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Unsatisfied of how sales of a new product is performing, the manager in charge launches a campaign to advertise it in some randomly selected cities
Unsatisfied of how sales of a new product is performing, the manager in charge launches a campaign to advertise it in some randomly selected cities while in other randomly selected cities the campaign does not take place. The plan is to record sales in each city five weeks after the beginning of the campaign: let y; be sales in city i, in week 5 and D; be a binary variable equal to 1 if city i is exposed to the campaign, 0 otherwise. 5) The manager has a vague recollection from the statistics course that to estimate the effect of D on y s/he should regress y on D and on a number of other characteristics of the cities to avoid the Omitted Variable Bias (OVB). What should s/he do
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