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What the difference-in-difference estimate of the increase

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Problem 1: A local Birmingham-area restaurant chain introduced a new summer menu in its Vestavia Hills location, but not its Mountain Brook location. Nightly revenue averaged $6,000 in Vestavia Hills and $4,000 in Mountain Brook before the menu change, but $7,000 in Vestavia Hills and $3,000 in Mountain Brook after the menu change. The difference-in-difference estimate of the increase in average nightly revenue attributable to the menu change is

Option 1: $4,000.
Option 2: $0.
Option 3: $1,000.
Option 4: $2,000.

Reference no: EM132811220

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