Question 2 18 points Save Answer You are interested in whether marijuana legalization affected alcohol sales. Suppose that in December of 2018, North Dakota passed a law legalizing marijuana effective January 1, 2019, while South Dakota did not. You have the following annual data for per capita monthly beer expenditures for calendar years 2018 and 2019. Use it to answer the following questions. 2018 2019 North Dakota $50.00 $55.00 South Dakota $43.00 $45.00 a) [3 points] Interpret the value in the 2018 North Dakota cell. b) [9 points] Calculate and interpret the differences-in-differences estimate. Suppose the standard error for this value is 2. Is it statistically-significant at the 5% level? How do you know? c) [3 points] What needs to be true for this estimate to represent the causal effect? For full credit, be specific to this context. d) [3 points] What does the diff-in-diff design assume is the counterfactual outcome for North Dakota? (Your answer should be a number.) Cor the toolbar ross ATC10 DC or ATICNIC10 Mac Question 2 18 points Save Answer You are interested in whether marijuana legalization affected alcohol sales. Suppose that in December of 2018, North Dakota passed a law legalizing marijuana effective January 1, 2019, while South Dakota did not. You have the following annual data for per capita monthly beer expenditures for calendar years 2018 and 2019. Use it to answer the following questions. 2018 2019 North Dakota $50.00 $55.00 South Dakota $43.00 $45.00 a) [3 points] Interpret the value in the 2018 North Dakota cell. b) [9 points] Calculate and interpret the differences-in-differences estimate. Suppose the standard error for this value is 2. Is it statistically-significant at the 5% level? How do you know? c) [3 points] What needs to be true for this estimate to represent the causal effect? For full credit, be specific to this context. d) [3 points] What does the diff-in-diff design assume is the counterfactual outcome for North Dakota? (Your answer should be a number.) Cor the toolbar ross ATC10 DC or ATICNIC10 Mac