In an Experimental Design, If Your Groups Are Different Prior

question 4

Multiple Choice

In an experimental design, if your groups are different prior to the intervention, then you may have ________________.

• A) testing threat
• B) attrition threat
• C) regression to the mean
• D) selection bias

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Definitions:

Corrective Taxes

Taxes designed to correct the effects of negative externalities, often imposed to encourage or discourage certain behaviors.

Social Optimum

A state in which resources are allocated in the most efficient way from the perspective of society as a whole.

Economic Efficiency

A state where all resources in an economy are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Transaction Cost

Expenses incurred when buying or selling goods or services, including fees, taxes, and other charges.