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Chapter 9: Q5E (page 528)

Identifying the type of experiment. Brief descriptions of a number of experiments are given next. Determine whether each is observational or designed and explain your reasoning.

a. An economist obtains the unemployment rate and gross state product for a sample of states over the past 10 years, with the objective of examining the relationship between the unemployment rate and the gross state product by census region.

b. A manager in a paper production facility installs one of three incentive programs in each of nine plants to determine the effect of each program on productivity.

c. A marketer of personal computers runs ads in each of four national publications for one quarter and keeps track of the number of sales that are attributable to each publication鈥檚 ad.

d. An electric utility engages a consultant to monitor the discharge from its smokestack on a monthly basis over a 1-year period to relate the level of sulfur dioxide in the discharge to the load on the facility鈥檚 generators.

e. Intrastate trucking rates are compared before and after governmental deregulation of prices changed, with the comparison also taking into account distance of haul, goods hauled, and the price of diesel fuel.

Short Answer

Expert verified

e. The experiment is an observational experiment.

Step by step solution

01

Given Information

Intrastate trucking rates are compared before and after governmental deregulation.

02

 Step 2: Concept

The researcher draws observations regarding the treatments in an observational experiment.

03

Identifying the type of experiment

e.

Interstate trucking rates are compared before and after governmental deregulation of prices changed. This comparison also considers the distance of haul, goods hauled, and the price of diesel fuel. Specifications of the treatment are not controllable.

Therefore, the experiment is an observational experiment.

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Most popular questions from this chapter

Contingent valuation of homes in contaminated areas. Contingent valuation (CV) is a method of estimating property values that uses survey responses from potential homeowners. CV surveys were employed to determine the impact of contamination on property values in the Journal of Real Estate Research (Vol. 27, 2005). Homeowners were randomly selected from each of seven states鈥擪entucky, Pennsylvania, Ohio, Alabama, Illinois, South Carolina, and Texas. Each homeowner was asked to estimate the property value of a home located in an area contaminated by petroleum leaking from underground storage tanks (LUST). The dependent variable of interest was the LUST discount percentage (i.e., the difference between the current home value and estimated LUST value as a percentage). The researchers were interested in comparing the mean LUST discount percentages across the seven states.

a. Give the null and alternative hypotheses of interest to the researchers.

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Corporate sustainability and firm characteristics. Refer to the Business and Society (March 2011) study on how firm size and firm type impact corporate sustainability behaviors, Exercise 1.28 (p. 51). Certified Public Accountants (CPAs) were surveyed on their firms鈥� likelihood of reporting sustainability policies (measured as a probability between 0 and 1). The CPAs were divided into four groups depending on firm size (large or small) and firm type (public or private): large/public, large/private, small/ public, and small/private. One goal of the analysis was to determine whether the mean likelihood of reporting sustainability policies differs depending on firm size and firm type. Identify each of the following elements for this study:

a. Experimental units

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d. Factor levels

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What is the difference between an observational experiment and a designed experiment?

Explain the difference between an experiment that employs a completely randomized design and one that employs a randomized block design.

Why does the experiment wise error rate of a multiplecomparisons procedure differ from the significance level for each comparison (assuming the experiment has more than two treatments)?
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