Question

In: Accounting

Ravi wants to know what impact switching to a commission versus a salary system will have...

  • Ravi wants to know what impact switching to a commission versus a salary system will have on his sales employees’ effectiveness. He selects two of the seven sales regions he is responsible for and changes their pay from salary only to commission only (IV). He compares monthly sales data (DV) for six months prior and six months after this change for the new commission-only regions, and also compares these numbers to the other five salary-only regions.
    • What form of study design is this?
    • Will the researcher be able to make claims about causality with this study?

Solutions

Expert Solution

1. Analytic study - Experimental - Randomised parallel group

In analytic study attempts to quantify the relationship between two factors, that is, the effect of an intervention or exposure on an outcome. To quantify the effect we will need to know the rate of outcomes in a comparison group as well as the intervention or exposed group. Whether the researcher actively changes a factor or imposes uses an intervention determines whether the study is considered to be observational , or experimental.

In experimental studies, the researcher manipulates the exposure, that is he allocates subjects to the intervention or exposure group. Experimental studies, or randomised controlled trials, are similar to experiments in other areas of science. That is, subjects are allocated to two or more groups to receive an intervention or exposure and then followed up under carefully controlled conditions. Such studies controlled trials, particularly if randomized and blinded, have the potential to control for most of the biases that can occur in scientific studies but whether this actually occurs depends on the quality of the study design and implementation.

2. Yes


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