A team of Researchers used. the survey of consumer attitudes to investigate whet

Question

A team of Researchers used. the survey of consumer attitudes to investigate whether incentives would improve the response rates on telephone surveys. A national sample of 735 households was randomly selected, and all 735 of the households were sent an "advance letter" explaining that the household would be contacted shortly for a survey. However,368 households were randomly assigned to receive a monetary incentive along with the advance letter. Here are the data on how many households responded to the telephone survey.

Received an Incentive

Total

Question:1.) What are the observational Units?

2.) Did the study involve random sampling? If yes, what is the advantage of a randomly selected sample? If no, what is the disadvantage?

3.) Did the study involve random assignment to either receive the incentive or not? If yes, what is the advantage of random assignment? If no, what is the disadvantage?

Received an Incentive

Received an Incentive

Yes No Total Responded to the survey Yes 286 245 531 No 82 122 204

Total

368 367 735

Explanation / Answer

1) Observational units are households randomly assigned incentives.

2) Yes study involve the random sampling. Advantage of random sampling is it is not biased. Each unit has equal chance to get selecetd in the sample. It is simple and easy to do.

3) Yes the study involve random assignment to receive incentive. Advantage of random assignment is help to ensure that any differences between and within the groups are not systematic at the outset of the experiment.

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