Selection Bias Is a Threat to External Validity

question 59

True/False

Selection bias is a threat to external validity.

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Definitions:

Safe Drivers

Individuals who exhibit behaviors and practices that significantly reduce the likelihood of being involved in accidents or receiving traffic citations.

Information Asymmetry

A situation where one party in a transaction has more or superior information compared to another. This can cause market inefficiencies and power imbalances.

Moral Hazard

The situation where one party is more likely to take risks because another party bears the consequences.

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions, often observed in insurance and financial sectors.