Determine If the Following Scenario Is an Observational Study or a Controlled

question 4

Essay

Determine if the following scenario is an observational study or a controlled experiment and explain your reasoning. A school teacher is interested in determining whether students who take multiple choice tests do better than students who take true/false tests. She has been giving multiple choice tests since she started teaching and is wondering if she should change her testing method. She randomly assigns half of her students to take a multiple choice test about grammar rules, and the other half to take a true/false test about grammar rules. She compares the test scores of the students in each group.

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Definitions:

Excess Reserves

The excess funds that a bank or financial institution maintains beyond the minimum mandated by regulatory bodies, creditors, or its own internal policies.

Money Supply

The total amount of money—cash, coins, and balances in bank accounts—in circulation within a country's economy at a specific time.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand and not lend out, as set by the central bank.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.