The Government Runs an Experiment Where a Random Sample of 200

question 30

Multiple Choice

The government runs an experiment where a random sample of 200 adults over 40 get a 5% tax cut and a random sample of 200 adults under 40 get no tax cut. Their results show that spending, on average, increased 8% with a 5% tax cut. They conclude that a 5% tax cut for all adult Americans will increase spending by 8%. Why is this logic flawed?

• A) The effect of the treatment on the treated may not be the average treatment effect.
• B) A 5% tax cut for all Americans suffers from selection bias.
• C) The measured effect of the treatment on the treated may be biased.
• D) The logic is not flawed.

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Definitions:

Sleep Apnea

A sleep disorder characterized by temporary cessations of breathing during sleep and repeated momentary awakenings.

Sleep Loss

The condition of not obtaining an adequate amount of sleep, either chronically or acutely, which can impair cognitive function and physical health.

Occasional Sleep

Periodic episodes of sleep outside the regular sleep schedule, which may arise due to various circumstances or conditions.

Physical Exercise

Physical Exercise is any bodily activity that enhances or maintains physical fitness and overall health and wellness.