hard20 pts · first answer countscausal-inference

Difference-in-differences assumption

You launch a new pricing policy in Karnataka only and compare its sales change with the sales change in Tamil Nadu using difference-in-differences. What key assumption must hold?

A.Both states must have identical sales levels before the launchB.The policy must be randomly assigned to individual customersC.Sales must be normally distributedD.Parallel trends: without the policy, sales in both states would have changed by the same amount over time

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Difference-in-differences assumption

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