As a market manager you occasionally run discount promotions via one of three social media platforms, a) Facebook, b) WeChat, c) Twitter. You would like to see whether the choice of media platform influences the number of customers who take on the promotion. You would also like to control for the size of the discount (measured in $) for each promotion. Suppose Facebook is chosen as the base case and the coefficient for WeChat is positive and the coefficient for Twitter is negative. If Twitter is now chosen as the base case instead, which of the following is true? O The coefficient of WeChat will change, but it will remain positive. O The coefficient of WeChat will not change at all. O The coefficient of WeChat will change, but it will be negative. 2 There is insufficient information in the question to determine whether or not the coefficient of WeChat will change.

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As a market manager you occasionally run discount promotions via one of three social media
platforms, a) Facebook, b) WeChat, c) Twitter. You would like to see whether the choice of media
platform influences the number of customers who take on the promotion. You would also like to
control for the size of the discount (measured in $) for each promotion. Suppose Facebook is
chosen as the base case and the coefficient for WeChat is positive and the coefficient for Twitter is
negative.
If Twitter is now chosen as the base case instead, which of the following is true?
O The coefficient of WeChat will change, but it will remain positive.
O The coefficient of WeChat will not change at all.
O The coefficient of WeChat will change, but it will be negative.
2 There is insufficient information in the question to determine whether or not the coefficient of WeChat will
change.
Transcribed Image Text:As a market manager you occasionally run discount promotions via one of three social media platforms, a) Facebook, b) WeChat, c) Twitter. You would like to see whether the choice of media platform influences the number of customers who take on the promotion. You would also like to control for the size of the discount (measured in $) for each promotion. Suppose Facebook is chosen as the base case and the coefficient for WeChat is positive and the coefficient for Twitter is negative. If Twitter is now chosen as the base case instead, which of the following is true? O The coefficient of WeChat will change, but it will remain positive. O The coefficient of WeChat will not change at all. O The coefficient of WeChat will change, but it will be negative. 2 There is insufficient information in the question to determine whether or not the coefficient of WeChat will change.
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