MATH 110 Concepts of Algebra Final Exam.pdf

The next three questions refer to the following information.    Safelite is a windshield repair company. If your windshield breaks, they send a technician to fix your windshield. Safelight used to pay its technicians a fixed hourly wage of $25/hour, regardless of the number of windshields they fixed. However they thought their technicians would work harder if they were instead paid $50 per windshield replaced.  This is called a piece rate contract. Safelite wanted to test this idea, but the union would not let them change everyone’s pay. So to test their idea, they ran experiment where workers were randomly assigned to a control group or a treatment group. For the control group, there was no change to pay. For the treatment group, workers could choose whether they wanted the fixed hourly wage contract or the piece rate contract. 

The next two questions refer to the following information.   A textile company has installed air conditioners in some of its buildings, but not others. It is considering installing air conditions in the remaining facilities, and wants to see how air conditioning affects output. You therefore conduct a difference-in-differences analysis, using data from facilities that do and do not have air conditions, before and after air conditioning installation. The plot below shows output per facility over time, for each group.   

Do the data appear consistent with the assumptions necessary for difference-in-differences?

Did you turn on sharing for your notebook, so that I can view it if you give me the link? 

The graphs below shows data from the company.  Roughly what is the effect of an additional $1,000 of salary offer on the probability of job acceptance?

Setting aside any possible concern from the prior question, what would you say is the difference-in-differences estimate of the effect of air conditioning on output?

The graphs below shows data from the company.  Roughly what is the effect of an additional $1,000 of salary offer on the probability of job acceptance?

Setting aside any possible concern from the prior question, what would you say is the difference-in-differences estimate of the effect of air conditioning on output?

For many years, a company had a very generous health insurance plan, with no deductible. In 2023, the company introduced a $3000 deductible for all employees, and the company has no information about non-employees. The company wants to know how the deductible affected health care spending. What identification strategy would be most appropriate?