Suppose That Two Experiments Were Conducted to Assess the Effect

question 19

Essay

Suppose that two experiments were conducted to assess the effect of a new insect repellant. In Experiment A, a simple random sample was taken from the population of River City. In Experiment B, a simple random sample from a group of volunteers from the population of River City was used. The results of the experiments were the same: fewer insects landed on the arms that had been treated with the insect repellant. The volunteers were randomly assigned to the two treatments in both experiments. (a) For each experiment, A and B, discuss whether one can legitimately infer a cause-and-effect relation between the use of the repellant and fewer insects landing from each of these experiments? Why or why not? (b) For each experiment, A and B, discuss whether one can legitimately generalize to the population of River City from each of these experiments? Why or why not?

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Definitions:

Insurance Policy

An insurance policy is a legal contract between an insurer and the insured, outlining the terms under which the insurer agrees to compensate the insured for specific losses in exchange for a premium.

Transfer Risk

The uncertainty associated with cross-border financial transactions, particularly the risk that a foreign debtor will default on its obligations due to external factors like currency restrictions.

Laissez-faire Capitalism

An economic philosophy advocating for minimal government intervention in the market.

Minimal Government Intervention

Minimal government intervention refers to an economic policy or philosophy where the government has a very limited role in the economy, allowing the market to operate with minimal regulatory influence.