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Chapter 1: Problem 13

The article "Why We Fall for This" (AARP Magazine, May/June 2011) described a study in which a business professor divided his class into two groups. He showed students a mug and then asked students in one of the groups how much they would pay for the mug. Students in the other group were asked how much they would sell the mug for if it belonged to them. Surprisingly, the average value assigned to the mug was quite different for the two groups! Indicate whether the study is an observational study or an experiment. Give a brief explanation for your choice.

Short Answer

Expert verified
This study is an experiment because the professor is actively manipulating the way the question is presented to different groups and observing the effect of this manipulation on the responses given by the students.

Step by step solution

01

Understanding the Basics

An observational study is one where we simply gather data from different groups, without any intervention or attempt to control the groups or environments. An experiment, on the other hand, involves applying a treatment or intervention to one or more groups, in order to observe the results.
02

Analyze the Scenario

The professor divided the class into two groups. One group was asked how much they would pay for a mug, while the other group was asked how much they would sell the mug for if it belonged to them.
03

Making a Decision

In this study, the professor is manipulating one variable: the framing of the question concerning the value of a mug. The effect of this manipulation is then observed through the responses given by the students. Therefore, this qualifies as an experiment.

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Most popular questions from this chapter

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