STA221H1 Lecture Notes - Lecture 54: Statistical Unit, Dependent And Independent Variables, Multiple Comparisons Problem
18 Apr 2018
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Document Summary
The journal of economic psychology published a study on high-stakes insurance decisions. In part a of the experiment, 84 subjects were informed of the hazards (both re and theft) of owning a valuable painting, but were not told the exact probabilities of the hazards occurring. The subjects then provided an amount they were willing to pay (wtp) for insuring the painting. In part b of the experiment, these same subjects were informed of the exact probabilities of the hazards ( re and theft) of owning a valuable sculpture. The subjects then provided a wtp amount for insuring the sculpture. The researchers were interested in comparing the mean wtp amounts for the painting and the sculpture: explain why the experimental design employed is a randomized block design. The experimental units are matched sets (homogenous), in that the experimental units are assigned to both the painting and sculpture groups.
