Question

Cash to find work? (4.2) Will cash bonuses speed the return to work of unemployed people? The Illinois Department of Employment Security designed an experiment to find out. The subjects were 10,065 people aged 20 to 54 who were filing claims for unemployment insurance. Some were offered \(500 if they found a job within 11 weeks and held it for at least 4 months. Others could tell potential employers that the state would pay the employer \)500 for hiring them. A control group got neither kind of bonus.15

a. Describe a completely randomized design for this experiment.

b. Explain how you would use a random number generator to assign the treatments.

c. What is the purpose of the control group in this setting?

Short answer

Part a) A completely randomized design is:

Part b) The treatments are assigned a random number generator, which is listed as:

The subject $1;5364$is selected for treatment 1

The subject $2;5668$is selected for treatment 1

The subject $3;1261$is selected for treatment 1

Step-by-step solution

Part a) Step 1: The objective is to determine a completely randomized design for the given experiment is to be described.

A completely randomized design is a statistical term that describes the simplest experimental design in terms of convenience and analysis.

The treatments are assigned at random from the subject using this design. So, a completely randomized design for the subject of 10065 people aged $20-54$who filed an unemployment insurance claim is:

Therefore, a completely randomized design is well described above.

Part b) Step 1: Given information

Number of subjects$10065$

Part b) Step 2: The objective is to determine a random number generator for the treatments assign is to be explained. 

Each subject must be assigned a unique integer number from the $1-10065$number system. To select the first three subjects for the treatments, select the line $137$from table B:

$5364566812612414783612609153739848114592$

Check each consecutive number of four consecutive numbers here. If the first digit is one$1,$it corresponds to a subject.

If the number corresponds to a subject, you should select that subject:

The subject $1;5364$is selected for treatment 1

The subject $2;5668$is selected for treatment 1

The subject $3;1261$is selected for treatment 1

Therefore, the random number generator is well described above.