The government runs an experiment where a random sample of 200 adults over 40 get a 5% tax cut and a random sample of 200 adults under 40 get no tax cut. Their results show that spending, on average, increased 8% with a 5% tax cut. They conclude that a 5% tax cut for all adult Americans will increase spending by 8%. Why is this logic flawed?
A. The measured effect of the treatment on the treated may be biased.
B. A 5% tax cut for all Americans suffers from selection bias.
C. The effect of the treatment on the treated may not be the average treatment effect.
D. The logic is not flawed.
Answer: B
You might also like to view...
An alternative to species-based conservation focuses on the preservation of ____
a. small species b. large species c. plant species only d. insect species only e. intact habitats
Which embryonic tissue is incorrectly associated with its derivative?
a. skin from mesoderm b. nervous system from ectoderm c. liver from endoderm d. circulatory system from mesoderm e. respiratory tract from endoderm
Which of the following is not a characteristic of B cells?
A) They carry out cell-mediated immunity. B) They originate in bone marrow. C) They are responsible for the memory response of humoral immunity. D) They are responsible for antibody formation. E) They have antibodies on their surfaces.
Eczema is an autoimmune disorder.
Answer the following statement true (T) or false (F)