Business Analytics Quiz
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EXPERIMENTATION AND CAUSAL THINKING
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A company estimates the effect of expedited service using a regression discontinuity design. With a relatively wide bandwidth, the estimated increase in repeat purchases is 8 percentage points with a standard error of 1 percentage point. With a much narrower bandwidth, the estimate is 3 percentage points with a standard error of 2.5 percentage points. Both specifications use the same eligibility cutoff.
Which interpretation best reflects the usual bandwidth tradeoff in this setting?
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