1What is the main purpose of statistical inference?
Statistical Inference
Easy
A.To remove all variation from collected data
B.To display every value in a population
C.To arrange observations in alphabetical order
D.To draw conclusions about a population from a sample
Correct Answer: To draw conclusions about a population from a sample
Explanation:
Statistical inference uses sample information to make estimates or decisions about a population.
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2Which activity is an example of statistical inference?
Statistical Inference
Easy
A.Listing the names of all survey participants
B.Sorting survey responses from lowest to highest
C.Estimating voter support using a survey sample
D.Calculating the exact size of a surveyed group
Correct Answer: Estimating voter support using a survey sample
Explanation:
Using a sample to estimate voter support in the full population is statistical inference.
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3In statistics, what is a population?
Samples, Populations and Experimental Design
Easy
A.The complete group being studied
B.The average value in a dataset
C.A small part of the collected data
D.A graph of the collected observations
Correct Answer: The complete group being studied
Explanation:
A population is the entire group of individuals, objects, or measurements of interest.
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4Why is random assignment used in an experiment?
Samples, Populations and Experimental Design
Easy
A.To create comparable treatment groups
B.To increase the population size
C.To guarantee the expected result
D.To eliminate the response variable
Correct Answer: To create comparable treatment groups
Explanation:
Random assignment helps balance other influences across treatment groups.
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5What is the sample mean of , , and ?
Measures of Location: The Sample Mean and Median
Easy
A.
B.
C.
D.
Correct Answer:
Explanation:
The sample mean is .
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6What is the median of the ordered values ?
Measures of Location: The Sample Mean and Median
Easy
A.
B.
C.
D.
Correct Answer:
Explanation:
The median is the middle value of an ordered dataset, which is .
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7What does the range of a dataset measure?
Measures of Variability
Easy
A.The sum of all values divided by their number
B.The value appearing most often in the dataset
C.The middle value after ordering the observations
D.The difference between its largest and smallest values
Correct Answer: The difference between its largest and smallest values
Explanation:
The range is calculated as the maximum value minus the minimum value.
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8Which measure describes how spread out observations are around their mean?
Measures of Variability
Easy
A.Sample mode
B.Standard deviation
C.Sample median
D.Arithmetic mean
Correct Answer: Standard deviation
Explanation:
Standard deviation measures the typical spread of observations around the mean.
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9Which variable is an example of discrete data?
Discrete and Continuous Data
Easy
A.Temperature of a classroom
B.Height of a sunflower
C.Time required to finish a race
D.Number of books on a shelf
Correct Answer: Number of books on a shelf
Explanation:
The number of books is a count and can take only separate whole-number values.
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10Which variable is an example of continuous data?
Discrete and Continuous Data
Easy
A.Count of defective bulbs
B.Weight of a package
C.Number of school buses
D.Number of phone calls
Correct Answer: Weight of a package
Explanation:
Weight can take any value within a measurement interval, so it is continuous.
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11What is a statistical model?
Statistical Modeling
Easy
A.A mathematical representation of a data-generating process
B.A complete list of observations in alphabetical order
C.A device used to measure physical quantities
D.A rule requiring every observation to be identical
Correct Answer: A mathematical representation of a data-generating process
Explanation:
A statistical model uses mathematical ideas to describe how data may be generated.
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12In a simple linear model, what does a line commonly describe?
Statistical Modeling
Easy
A.The labels assigned to four categories
B.The relationship between two variables
C.The difference between two sample sizes
D.The exact order of all observations
Correct Answer: The relationship between two variables
Explanation:
A fitted line summarizes how one quantitative variable tends to change with another.
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13What should a researcher do first when scientifically inspecting a dataset?
Scientific Inspection
Easy
A.Delete its unusual observations
B.Assume its measurements are correct
C.Replace its missing values with zero
D.Check its values and structure
Correct Answer: Check its values and structure
Explanation:
Initial inspection helps identify data types, missing values, errors, and unusual observations.
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14Why should units of measurement be checked during data inspection?
Scientific Inspection
Easy
A.To remove the need for data collection
B.To make every observation numerically equal
C.To ensure every variable is categorical
D.To interpret and compare values correctly
Correct Answer: To interpret and compare values correctly
Explanation:
Knowing the units prevents incorrect comparisons and interpretations.
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15Which graph is commonly used to inspect residuals from a statistical model?
Graphical Diagnostics
Easy
A.Pie chart
B.Frequency table
C.Residual plot
D.Bar chart
Correct Answer: Residual plot
Explanation:
A residual plot helps reveal patterns that may indicate problems with a fitted model.
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16What does a clear curved pattern in a residual plot often suggest?
Graphical Diagnostics
Easy
A.The sample contains only categorical values
B.The fitted relationship may not be linear
C.The fitted model has perfect agreement
D.The response variable has no observations
Correct Answer: The fitted relationship may not be linear
Explanation:
A curved residual pattern suggests that a straight-line model may not capture the relationship.
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17Which graph is most suitable for displaying the distribution of one quantitative variable?
Graphical Methods and Data Description
Easy
A.Organization chart
B.Pie chart
C.Flowchart
D.Histogram
Correct Answer: Histogram
Explanation:
A histogram groups quantitative values into intervals and displays their frequencies.
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18Which graph is commonly used to compare frequencies across categories?
Graphical Methods and Data Description
Easy
A.Residual plot
B.Scatterplot
C.Bar chart
D.Histogram
Correct Answer: Bar chart
Explanation:
A bar chart uses separate bars to compare counts or frequencies among categories.
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19In which type of study does a researcher assign treatments to participants?
General Types of Statistical Studies
Easy
A.Census report
B.Case summary
C.Observational study
D.Experimental study
Correct Answer: Experimental study
Explanation:
In an experimental study, the researcher deliberately assigns treatments or conditions.
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20What distinguishes an observational study from an experiment?
General Types of Statistical Studies
Easy
A.Participants are always selected from one location
B.Every member of the population is measured
C.Treatments are not assigned by the researcher
D.All variables are required to be quantitative
Correct Answer: Treatments are not assigned by the researcher
Explanation:
An observational study records existing conditions without assigning treatments.
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21A random sample has mean and standard error . Using the approximation estimate standard errors, what is an approximate 95% confidence interval for the population mean?
Statistical Inference
Medium
A.
B.
C.
D.
Correct Answer:
Explanation:
The approximate interval is , giving .
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22A hypothesis test produces a p-value of . Which interpretation is correct?
Statistical Inference
Medium
A.Repeating the study will produce the same result with probability .
B.Assuming the null hypothesis is true, results at least this extreme occur with probability .
C.The alternative hypothesis has a probability of of being true.
D.The null hypothesis has a probability of of being true.
Correct Answer: Assuming the null hypothesis is true, results at least this extreme occur with probability .
Explanation:
A p-value is calculated under the assumption that the null hypothesis is true and measures how unusual the observed result is.
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23A farmer wants to compare two fertilizers in a field with a known north-to-south fertility gradient. Which design best controls for this gradient?
Samples, Populations and Experimental Design
Medium
A.Allow workers to choose which fertilizer to apply to each plot.
B.Apply both fertilizers only to plots near the center of the field.
C.Apply one fertilizer in the north and the other fertilizer in the south.
D.Divide the field into north-to-south blocks and randomize fertilizers within each block.
Correct Answer: Divide the field into north-to-south blocks and randomize fertilizers within each block.
Explanation:
Blocking groups plots with similar natural fertility, while randomization reduces systematic treatment bias.
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24A company has employees distributed among three departments in proportions , , and . For a proportional stratified sample of 200 employees, how many should be selected from the departments?
Samples, Populations and Experimental Design
Medium
A., , and
B., , and
C., , and
D., , and
Correct Answer: , , and
Explanation:
Multiplying 200 by each department proportion gives , , and employees.
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25For the data set , what are the sample mean and median?
Measures of Location: The Sample Mean and Median
Medium
A.Mean and median
B.Mean and median
C.Mean and median
D.Mean and median
Correct Answer: Mean and median
Explanation:
The mean is , and the middle ordered value is .
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26In the data set , the value is replaced by . How do the sample mean and median change?
Measures of Location: The Sample Mean and Median
Medium
A.The mean increases by , while the median remains unchanged.
B.The mean remains unchanged, while the median increases by .
C.The mean and median both increase by .
D.The mean increases by , while the median remains unchanged.
Correct Answer: The mean increases by , while the median remains unchanged.
Explanation:
The total increases by , so the mean increases by . The middle value remains .
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27What is the sample variance of the observations ?
Measures of Variability
Medium
A.
B.
C.
D.
Correct Answer:
Explanation:
The mean is , and the squared deviations sum to . Thus, .
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28A variable has a standard deviation of . If , what is the standard deviation of ?
Measures of Variability
Medium
A.
B.
C.
D.
Correct Answer:
Explanation:
Multiplying every value by multiplies the standard deviation by . Subtracting does not affect variability.
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29Which variable is discrete even though it may take many possible values?
Discrete and Continuous Data
Medium
A.The number of customers entering a store each day
B.The temperature inside a storage room
C.The time required to serve a customer
D.The weight of a package before shipping
Correct Answer: The number of customers entering a store each day
Explanation:
A customer count takes nonnegative integer values, whereas time, weight, and temperature are continuous measurements.
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30A machine's actual fill volume is recorded to the nearest milliliter. How should the underlying fill volume and the recorded value be classified?
Discrete and Continuous Data
Medium
A.Both the underlying volume and recorded value are continuous.
B.The underlying volume is discrete, but the recorded value is continuous.
C.The underlying volume is continuous, but the recorded value is discrete.
D.Both the underlying volume and recorded value are discrete.
Correct Answer: The underlying volume is continuous, but the recorded value is discrete.
Explanation:
Actual volume varies continuously, but rounding restricts recorded values to separate milliliter increments.
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31A linear model is fitted to predict fuel use from distance traveled. Its residual plot shows a clear U-shaped pattern. What does this indicate?
Statistical Modeling
Medium
A.The linear model misses a nonlinear relationship.
B.The observations are necessarily measured incorrectly.
C.The response has no relationship with distance.
D.The fitted line has exactly the correct form.
Correct Answer: The linear model misses a nonlinear relationship.
Explanation:
A systematic curved residual pattern indicates that a straight-line model does not capture the relationship's shape.
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32A regression model was developed using machine speeds from to rpm. It is used to predict output at rpm. What is the main concern?
Statistical Modeling
Medium
A.The prediction is an interpolation within the observed range.
C.The prediction is an extrapolation beyond the observed range.
D.The fitted model cannot calculate values above the sample mean.
Correct Answer: The prediction is an extrapolation beyond the observed range.
Explanation:
A prediction at rpm extends beyond the data used to fit the model, where the modeled relationship may not continue.
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33A laboratory data set contains the measurements , , , and . What is the most appropriate initial action?
Scientific Inspection
Medium
A.Keep without investigating because all observations are valid.
B.Check instruments and source records for a measurement or transcription error.
C.Replace with the mean of the remaining measurements.
D.Delete immediately because it differs from the other values.
Correct Answer: Check instruments and source records for a measurement or transcription error.
Explanation:
An unusual observation should be investigated using scientific and data-collection context before it is corrected, retained, or removed.
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34Measurements from a process shift upward immediately after an instrument calibration. Which response best reflects scientific inspection?
Scientific Inspection
Medium
A.Assume the shift is random because calibrated instruments cannot create bias.
B.Investigate the calibration and process records before assigning a cause.
C.Conclude that calibration caused the shift because the events were consecutive.
D.Remove all measurements collected after the calibration from analysis.
Correct Answer: Investigate the calibration and process records before assigning a cause.
Explanation:
Timing suggests a possible connection, but instrument records and process evidence should be examined before reaching a causal conclusion.
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35In a residual-versus-fitted plot, residuals are tightly clustered at low fitted values but spread out at high fitted values. What problem is suggested?
Graphical Diagnostics
Medium
A.Complete response independence
B.Perfect multicollinearity
C.Constant error variance
D.Nonconstant error variance
Correct Answer: Nonconstant error variance
Explanation:
A fan-shaped residual plot indicates that error variability changes with the fitted response, violating constant-variance assumptions.
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36A normal Q-Q plot follows a straight line in the center but bends away strongly at both ends. What is the most reasonable conclusion?
Graphical Diagnostics
Medium
A.The distribution's tails differ from normal tails.
B.The fitted model has a perfect linear relationship.
C.The sample has no variation around its mean.
D.The observations have exactly a normal distribution.
Correct Answer: The distribution's tails differ from normal tails.
Explanation:
Departures at both ends of a Q-Q plot suggest that the observed tail behavior differs from that of a normal distribution.
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37A histogram of household incomes has one peak and a long right tail. Which relationship between the mean and median is most likely?
Graphical Methods and Data Description
Medium
A.The mean must be twice the median.
B.The mean is equal to the median.
C.The mean is greater than the median.
D.The mean is less than the median.
Correct Answer: The mean is greater than the median.
Explanation:
Large values in the right tail pull the mean upward more strongly than they affect the median.
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38A researcher wants to examine the relationship between hours studied and examination score for 80 students. Which graph is most appropriate?
Graphical Methods and Data Description
Medium
A.A scatterplot
B.A frequency polygon
C.A single boxplot
D.A pie chart
Correct Answer: A scatterplot
Explanation:
A scatterplot displays paired observations and reveals the direction, form, and strength of association between two quantitative variables.
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39Researchers compare disease rates among people who voluntarily choose different diets, without assigning the diets. Why is a causal conclusion limited?
General Types of Statistical Studies
Medium
A.Causal conclusions require the response variable to be continuous.
B.Voluntary participation guarantees random treatment assignment.
C.Disease rates cannot be measured in observational studies.
D.Diet choice may be associated with confounding variables.
Correct Answer: Diet choice may be associated with confounding variables.
Explanation:
Without randomized assignment, other characteristics related to both diet choice and disease may explain the observed association.
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40Investigators select people with a rare disease and people without it, then examine their past exposure to a chemical. What type of study is this?
General Types of Statistical Studies
Medium
A.A randomized controlled experiment
B.A cross-sectional sample survey
C.A retrospective case-control study
D.A prospective cohort study
Correct Answer: A retrospective case-control study
Explanation:
Participants are selected according to disease status, and their previous exposure is then assessed, which defines a retrospective case-control study.
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41A population is partitioned into strata of known sizes . An independent simple random sample of size is taken from each stratum, producing stratum means . Which estimator is unbiased for the overall population mean when the sampling fractions differ across strata?
Statistical Inference
Hard
A.
B.
C.
D.
Correct Answer:
Explanation:
Each stratum mean estimates its population stratum mean. Weighting by the stratum's population proportion, rather than its sample proportion, yields an unbiased overall mean.
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42A treatment is randomly assigned to classrooms, but outcomes are recorded for individual pupils. Classrooms have equal sizes, there is no attrition, and outcomes within a classroom are positively correlated. What is the primary consequence of analyzing all pupils as independent observations?
Samples, Populations and Experimental Design
Hard
A.The treatment effect is necessarily biased upward, while its standard error remains valid.
B.The effect estimate and standard error remain valid because classroom sizes are equal.
C.The effect estimate can remain unbiased, but its naive standard error is generally too small.
D.The effect estimate becomes inconsistent, but its naive standard error is generally too large.
Correct Answer: The effect estimate can remain unbiased, but its naive standard error is generally too small.
Explanation:
Randomization can preserve unbiasedness, but positive intraclass correlation reduces the effective sample size. Ignoring clustering therefore tends to underestimate uncertainty.
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43A sample has mean , median , variance , and interquartile range . Every observation is transformed using . Which set of summaries is correct for the transformed sample?
Measures of Location: The Sample Mean and Median
Hard
A.Mean , median , variance , and interquartile range
B.Mean , median , variance , and interquartile range
C.Mean , median , variance , and interquartile range
D.Mean , median , variance , and interquartile range
Correct Answer: Mean , median , variance , and interquartile range
Explanation:
Location measures transform as times the original value. Variance is multiplied by , while the interquartile range is multiplied by .
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44Two independent samples have summaries and , where each variance uses denominator . What is the sample variance after combining all observations?
Measures of Variability
Hard
A.
B.
C.
D.
Correct Answer:
Explanation:
The combined sum of squares includes both within-group variation and variation between group means. It equals , which divided by gives .
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45A variable equals with probability ; otherwise, it follows an exponential distribution with rate . Which description of the distribution of is correct?
Discrete and Continuous Data
Hard
A.It is absolutely continuous because its cumulative distribution function is nondecreasing.
B.It is mixed because it has an atom at zero and a continuous component above zero.
C.It is discrete because it assigns positive probability to the value zero.
D.It is continuous because its nonzero values have an exponential density.
Correct Answer: It is mixed because it has an atom at zero and a continuous component above zero.
Explanation:
The probability mass is a discrete atom, while the remaining probability is spread continuously over positive values.
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46Suppose , where , , and . Which ordinary least-squares formulation is equivalent to weighted least squares with weights ?
Statistical Modeling
Hard
A.Regress on without an intercept and constant error variance.
B.Regress on using an intercept and constant error variance.
C.Regress on without an intercept and constant error variance.
D.Regress on using an intercept and constant error variance.
Correct Answer: Regress on using an intercept and constant error variance.
Explanation:
Dividing by gives . The transformed error has constant variance .
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47Researchers inspect accumulating results after every 20 observations and stop the first time an ordinary two-sided test gives . Which approach best preserves the intended overall Type I error rate?
Scientific Inspection
Hard
A.Use a prespecified group-sequential boundary or an alpha-spending procedure.
B.Report only the final-look p-value because earlier looks were preliminary.
C.Double the final p-value because both directions of the effect were inspected.
D.Retain the cutoff because every individual test has size .
Correct Answer: Use a prespecified group-sequential boundary or an alpha-spending procedure.
Explanation:
Repeated opportunities to reject inflate the overall false-positive probability. Sequential boundaries or alpha-spending rules account for the multiple inspections.
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48A normal Q-Q plot of regression residuals is close to its reference line in the center, falls substantially below the line in the left tail, and rises substantially above it in the right tail. What is the most direct interpretation?
Graphical Diagnostics
Hard
A.The response variance decreases steadily as fitted values increase.
B.The residual distribution has lighter tails than the fitted normal distribution.
C.The regression mean function omits a monotone linear component.
D.The residual distribution has heavier tails than the fitted normal distribution.
Correct Answer: The residual distribution has heavier tails than the fitted normal distribution.
Explanation:
More-extreme-than-normal residuals appear below the line on the left and above it on the right. This outward tail pattern indicates heavy tails.
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49A histogram has bins , , and containing , , and observations, respectively. If the histogram uses density heights so that total area is , which relationship among the bar heights is correct?
Graphical Methods and Data Description
Hard
A.The heights have ratio , so the third bar is highest.
B.The heights have ratio , so all three bars have equal area.
C.The heights have ratio , so the third bar is highest.
D.The heights have ratio , so the first bar is highest.
Correct Answer: The heights have ratio , so the first bar is highest.
Explanation:
Density height is proportional to count divided by bin width. The resulting values are , , and , giving .
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50Investigators select people with a rare disease and without it, then compare prior exposure histories. With unknown case and control sampling fractions, which effect measure can be estimated directly from this case-control design?
General Types of Statistical Studies
Hard
A.The exposure-disease odds ratio based on cases and controls
B.The population disease prevalence among exposed people
C.The population risk difference between exposed and unexposed people
D.The exposed-to-unexposed ratio of disease incidence rates
Correct Answer: The exposure-disease odds ratio based on cases and controls
Explanation:
Case-control sampling does not directly preserve risks or prevalence, but the cross-product odds ratio is estimable. For a rare disease, it may also approximate a risk ratio.
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51In a paired experiment, each of subjects receives both treatments under randomized order. Which nonparametric bootstrap procedure is appropriate for constructing a confidence interval for the mean within-subject treatment difference?
Statistical Inference
Hard
A.Resample the two treatment columns independently and subtract their sample means.
B.Permute treatment labels within every pair and retain the resulting null distribution.
C.Resample the subject-level pairs and recompute the mean paired difference.
D.Pool all measurements, resample them, and divide them into two groups.
Correct Answer: Resample the subject-level pairs and recompute the mean paired difference.
Explanation:
The subject is the independent sampling unit. Resampling complete pairs preserves the dependence between each subject's two measurements.
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52Units in a finite population of known size are sampled with unequal inclusion probabilities . If is the resulting sample, which estimator is design-unbiased for the population mean?
Samples, Populations and Experimental Design
Hard
A.
B.
C.
D.
Correct Answer:
Explanation:
The Horvitz-Thompson estimator is unbiased for the population total. Dividing by the known gives an unbiased population mean.
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53One value is added to the sample . For which value of are the mean and median of the resulting six observations equal?
Measures of Location: The Sample Mean and Median
Hard
A.
B.
C.
D.
Correct Answer:
Explanation:
With , the ordered sample is . Its median is , and its mean is . The other choices do not make the two measures equal.
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54A fixed sample of observations has its largest value replaced by , where tends to infinity and remains the largest value. Which statement about the resulting summaries is correct?
Measures of Variability
Hard
A.The mean and median diverge, while the standard deviation remains bounded.
B.The mean and standard deviation diverge, while the median and median absolute deviation remain bounded.
C.The standard deviation and median diverge, while the mean and median absolute deviation remain bounded.
D.The median and median absolute deviation diverge, while the mean remains bounded.
Correct Answer: The mean and standard deviation diverge, while the median and median absolute deviation remain bounded.
Explanation:
A single arbitrarily large observation drives the mean and standard deviation upward. The median and median absolute deviation resist one extreme replacement in a sample of this size.
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55A latent measurement is normally distributed, but the instrument reports , the nearest integer to . Ignoring probability-zero boundary ties, what is the correct likelihood contribution from an observed report ?
Discrete and Continuous Data
Hard
A., because integer reports correspond to left-closed unit intervals
B., because the normal density evaluated at is the probability of observing
C., because rounding retains only the magnitude of the latent measurement
D., because all latent values in that interval report
Correct Answer: , because all latent values in that interval report
Explanation:
A rounded report represents an interval-censored continuous value. Its probability is the normal probability over , not a density evaluated at one point.
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56A two-component Gaussian mixture is parameterized by . Why can two distinct parameter vectors define exactly the same mixture distribution even with unlimited data?
Statistical Modeling
Hard
A.Every Gaussian mixture has an equivalent single-Gaussian representation.
B.Swapping both component labels and replacing by leaves the density unchanged.
C.Mixture weights disappear from the likelihood after observations are marginalized.
D.Gaussian component means cannot be estimated when their variances are unknown.
Correct Answer: Swapping both component labels and replacing by leaves the density unchanged.
Explanation:
Mixture component labels are arbitrary. Exchanging the two components and their weights produces the same density, creating label-switching non-identifiability.
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57Observed success counts are: mild cases—treatment , control ; severe cases—treatment , control . Which conclusion is supported by inspecting both the aggregate and stratified data?
Scientific Inspection
Hard
A.The reported counts are arithmetically incompatible with a reversal after aggregation.
B.Aggregation is harmless because each group contains exactly cases.
C.Treatment has a lower observed success rate within both severity strata.
D.Severity creates a Simpson's-paradox reversal: treatment is higher within each stratum but lower overall.
Correct Answer: Severity creates a Simpson's-paradox reversal: treatment is higher within each stratum but lower overall.
Explanation:
Treatment succeeds at versus for mild cases and versus for severe cases. Overall, however, treatment is versus control's because severity compositions differ.
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58A regression's residual-versus-fitted plot has residuals centered near zero without curvature, but its scale-location plot shows increasing steadily with fitted values. What problem is most strongly indicated?
Graphical Diagnostics
Hard
A.The predictors are highly collinear and produce unstable coefficient estimates.
B.The conditional mean function is nonlinear but the variance is constant.
C.The residual distribution is symmetric but has substantially lighter tails.
D.The conditional error variance increases as the fitted response increases.
Correct Answer: The conditional error variance increases as the fitted response increases.
Explanation:
An upward trend in the scale-location plot indicates that residual spread grows with fitted values, which is evidence of heteroscedasticity.
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59Let be uniformly distributed on and let . Which statement best describes what a scatterplot and the Pearson correlation would show?
Graphical Methods and Data Description
Hard
A.The correlation is positive because increases whenever increases.
B.The correlation is undefined because is a deterministic function of .
C.The correlation is negative because negative values of produce positive values of .
D.The correlation is zero, although the scatterplot shows a perfect nonlinear relationship.
Correct Answer: The correlation is zero, although the scatterplot shows a perfect nonlinear relationship.
Explanation:
Symmetry gives and , so the covariance is zero. The scatterplot still lies exactly on the parabola .
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60A difference-in-differences study compares pre-to-post outcome changes in a treated group with those in an untreated group. Which assumption is central for interpreting the difference-in-differences estimate causally?
General Types of Statistical Studies
Hard
A.The post-treatment outcomes must have equal variances in the two groups.
B.Before treatment, both groups must have had identical average outcome levels.
C.Treatment assignment must be independent of every measured baseline covariate.
D.Without treatment, the groups would have followed parallel average outcome trends.
Correct Answer: Without treatment, the groups would have followed parallel average outcome trends.
Explanation:
The parallel-trends assumption lets the control group's change represent the treated group's unobserved counterfactual change. Equal baseline levels are not required.
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