Prоfitаbility & Finаnciаl HealthDiscuss the impоrtance оf profitability and ratio analysis. How can financial ratios help identify strengths and weaknesses within a business?
Mаshаble is а news and entertainment website. As their business gоal is tо maximize readership, they engage in cоntinuous efforts to encourage the sharing of their articles in social media. In late 2017, the website decided to investigate whether the inclusion of images in articles may play a role in the readers’ propensities to share articles. Are articles which include images more or less likely to be shared in social media? Or do images not matter in this respect? The analysis consisted in a randomized controlled experiment. The experiment randomized 30,000 readers of a particular new article to three conditions: Condition A: the viewed article contained no images. Condition B: the viewed article contained one image. Condition C: the viewed article contained two images. The data file “examdata_mashable.csv” contains the data generated by the experiment. In these data, each observation corresponds to one unique reader. The list of variables included is: Share: whether the reader shared the article in social media (=1) or not (=0) Images: the number of images included in the article viewed by the reader (=0,1,2) Subscriber: whether the reader is a subscriber of the website (=1) or not (=0) Address the following tasks: [20 points] Estimate the ATE associated with the treatment “including at least one image.” By how much does this treatment increase or decrease in percentage terms the probability of sharing an article in social media? [20 points] What would be your recommendation for Mashable: to include zero, one, or two images in articles? Justify quantitatively. Note: you need to decide what is an appropriate analysis to address this question. There is not one unique way of doing this—multiple different approaches could be right. [20 points] Do subscribers and non-subscribers react differently to the treatment “including at least one image”? Justify quantitatively. Note: again, in this case, there is more than one way to tackle the question. Files: examdata_mashable.csv EXAM_SCRIPT.R Download the “EXAM_SCRIPT.R” template and fill in your answers into it. Continuously save your work. Make sure you upload the correct file and that the upload is successful. To upload your file, use the Insert menu in the Canvas submission area below (click on Insert > Document > Upload Document).