(See Problem 1

question 6

Multiple Choice

(See Problem 1.) Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay. If both play the strategy leave, then each gets a payoff of $200. If both play the strategy stay, then each gets a payoff of $800. If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D. When is the outcome where both play leave a Nash equilibrium?

• A) When D > C and C > $200.
• B) Never, since $800 > $200.
• C) Whenever D < $800.
• D) When $200 > C and D > $800 but not when $800 >D.
• E) Whenever $200 > C.

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Definitions:

Voluntary Response Bias

A bias in survey results that occurs when the respondents who choose to participate are not representative of the intended population.

Nonresponse Bias

A bias that occurs in survey statistics when individuals who do not respond differ significantly from those who do, affecting the validity of the results.

Response Bias

A type of bias that occurs when respondents to a survey or study give inaccurate answers, often due to the wording of questions or social desirability.

Undercoverage

A bias in statistical sampling where some members of the intended population are inadequately represented in the sample.