Question

In: Statistics and Probability

1.Below are three statements. For each statement: (i) State whether the statement is true or false....

1.Below are three statements. For each statement: (i) State whether the statement is true or false. (ii) Explain your reasoning.

A. In an additive relationship, Z defines a large compositional difference across values of X.

B. Field experiments have lower external validity than do laboratory experiments.

C. Random assignment neutralizes rival explanations.

Solutions

Expert Solution

A) false

in spurios relation , the control variable, Z, defines a large compositional differences across values of the independent variable, X. Further, this compositional difference is a cause of the dependent variable Y. After holding Z constant, the empirical association between X and Y turns out to be completely coincidental- not causal at all.

in additive relationship

the control variable is a cause of the dependent variable, but defines a small compositional difference across values of the independent variable. Because the relationship between X and Z is weak, X retains a causal relationship with Y after controlling for Z. In the additive scenario, the control variable, Z, also helps to explain the dependent variable.

b)

true

A lab experiment can be classed as having higher validity than a field experiment because a lab experiment gains control of all extraneous variables which could confound the results.

c)

true


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