For these two units, the parallel trends assumption is met.

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To analyze whether the parallel trends assumption is met in these two units, examine the pre-treatment period on the graph. 
Option: True or False. 
First, look at the two groups before treatment begins: the red line (Not Treated) and the blue line (Treated) both show a downward slope, and their directions are roughly the same. This indicates that, prior to the intervention, the trajectories in the two groups move in parallel rather than diverging, which is the key requirement of parallel trends. 
Second, consider the magnitude of the changes: the red line starts higher and declines at a similar rate to the blue line, meaning the gap between the groups remains relatively stable before treatment. This stability in the difference of outcomes across time is what we expect under parallel trends. 
Third, after the treatment starts, we expect any treatment effect to alter the post-treatment trajectory. In the plot, the lines diverge after treatment, which is consistent with an effect appearing only in the post-treatment period while preserving parallelism in the pre-treatment phase. 
Overall, because the pre-treatment trends for treated and untreated groups move in parallel (similar slopes and a stable gap), the parallel trends assumption appears to be satisfied for these two units. 
If there were substantial differences in the pre-treatment slopes or a changing gap prior to treatment, that would violate the assumption and would require alternative identification strategies. 
Therefore, the statement that the parallel trends assumption is met is supported by the visual evidence in the pre-treatment period, making True the appropriate choice for this question.

FA25_QTM_110_1 Quiz #8: Difference in Differences

For these two units, the parallel trends assumption is met.

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位置6的问题 Difference-in-differences is only valid when treated and untreated units have identical values for observable pre-treatment features.TrueFalseDon't Know清除选择

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The estimate produced by the DiD estimator in this example is:

For these two units, the parallel trends assumption is met.

Simply comparing the treated unit to the untreated unit in the post-treatment period would underestimate the true treatment effect.

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