Concept explainers
Sub part (a):
Identify the selection bias in the study of heart disease and fast food.
Sub part (a):
Explanation of Solution
A selection bias occurs in a study when the sample used is not random. In a study of 5,000 office workers in Chicago, they analysed only two variables namely heart disease and fast food. But in reality, there are many reasons behind the heart disease of a person. For example, lack of exercise or a poor healthy life style. In addition, there is a possibility to regularly eat fast food.
Concept introduction:
Selection bias: A selection bias occurs in a study if the sample used in that study is not random.
Sub part (b):
Identify the selection bias in the study of senior-assisted living facilities.
Sub part (b):
Explanation of Solution
A survey of senior-assisted living facilities states that majority of residents are females, because on an average, women tend to outlive men. But this is not in the case of old men citizens. They do not need as much assistance as older women. But the notable fact is that there are several older women in the population than older men.
Concept introduction:
Selection bias: A selection bias occurs in a study if the sample used in that study is not random.
Sub part (c):
Identify the selection bias in the study of graduation from private and public universities.
Sub part (c):
Explanation of Solution
This study of college student’s graduation from private and public universities states that an education from a private university will enhance a student’s earnings. A private university is more selective. Those who select private university have more earning potential than those who selected public universities. On the contrary, those students who have greater earning potential would likely to select private universities.
Concept introduction:
Selection bias: A selection bias occurs in a study if the sample used in that study is not random.
Want to see more full solutions like this?
Chapter 36 Solutions
Principles of Economics (12th Edition)
- What Is Quantity Discount Analysis?arrow_forwardThere are 81 white seniors graduating from high school and 27 black seniors. a. All of the students with high school degrees apply to UW – Milwaukee. The admissions office looks at their records, and finds that 30% of black students drop out after the first year, compared to 15% of white students. If they have 85 openings, how many of each type of student should the admissions office hire to maximize their graduation rate? b. Suppose there is no difference in graduation rates between black and white students. However, the admissions office wants students who will get good grades. They don’t have access to grade histories of different students, but they can see that all 26 of the 27 black applicants went to high school in Milwaukee, whereas 70 of the 81 white applicants went to schools in the suburbs. The schools in the suburbs have very good academic ratings, whereas the schools in Milwaukee do not. If they have 85 openings, how many of each type of student should the admissions…arrow_forwardDiscuss the concept of stationarity. What is the difference between strong and weak stationarity? Give an example of a stationary process.arrow_forward
- Explain the relationship between selection bias and volunteers and explain its impacts on statistical analysisarrow_forwardFive friends attend a matinee movie and spend $8 per ticket. They also purchase a small bag of popcorn each. The friends spend a total of $62.50. Let x be the price of a sm popcornarrow_forwardIn an article on how exercise improves health, the New York Times reported on an observational study that found that each hour spent running added two hours to a person's life expectancy [Brody. 20061 A week later, a letter to the editor questioned whether the results really proved anything about the impact of exercise on health, and suggested that the study could just as well be showing that "those with a strong heart and good health are otherwise more likely to enjoy running and do it more regularly." How does this challenge to the exercise study relate to the problems faced by economists trying to &slims the causal effects of economic policy? How could you design an experimental study to estimate the impact of running on life expectancy?arrow_forward
- When a company offers a new product or service, they estimate how much of that product or service people will want at different prices. This is referred to as the product or service demand. As the price of a product or service increases, the demand usually decreases, and this drives the price down. Companies use the estimated demand to determine how much of a product or service they are willing to supply at different prices. As the price of a product or service increases, companies are willing to supply more of it because they will earn more money. If you graph the demand and the supply curves on the same xy-plane, they will sometimes intersect at the point where the price and the supply are in equilibrium. Consider the scenario below. Yaseen is a local artist who wants to increase the amount of money she earns every month by selling at-home painting kits. These kits will include a photograph of the finished painting, a link and password to Yaseen’s YouTube channel where she will…arrow_forwardSuppose X = R k + for some k ≥ 2, and we define x = (x1 , …, xk ) ≥ = (y1 , …, yk ) if x ≥ y; that is, if for each i = 1, …, k, xi ≥ yi . (This is known as the Pareto ordering on R k + ; it plays an important role in the context of social choice theory in Chapter 8.) (a) Show that ≥ is transitive but not complete. (b) Characterize ≥ Is asymmetric? Is≥ Negatively transitive? Prove your assertions. (c) Characterize ~ defined from ≥ in the usual fashion; that is, x ~ y if x ≥ y and y x. Is ~ reflexive? Symmetric? Transitive? Prove your assertions.arrow_forwardWhat is ability bias, example?arrow_forward
- Omar's Fruit Shop sells only apples and bananas. Each week, Omar puts either apples or bananas on sale. He is trying to figure out which fruit he should put on sale this week. Omar gets all of his business from people who walk by his fruit shop and stop in. He performs some market research and asks 800 different people if they would purchase apples, bananas, or no fruit if they walked by and apples were on sale. He does the same for bananas being on sale. This week a total of 400 people will walk by Omar's Fruit Shop. The following table shows the profit for each type of fruit depending on which fruit Omar puts on sale: Apples on sale Bananas on sale Profit from apples $0.25 $0.40 Profit from bananas $0.45 $0.30 The following table shows the results from his market research. Customer choice Apples on sale Bananas on sale Apples 604 92 Bananas 90 620 No fruit 106 88 Total 800 800 What is Omar's expected profit if he puts apples on sale? What is Omar's…arrow_forwardSuppose there are two different neighborhoods in a city. One neighborhood has 400 Black residents and 600 white residents. The other neighborhood has 800 Black residents and 400 white residents. What is the Dissimilarity Index (DI) equal to?arrow_forwardA medical researcher is trying to cure a disease. For each unit of effort she puts into her work, she generates a utility benefit of 10 for each member of society. There are 1,000 people in society besides the medical researcher. The medical researcher doesn’t care about other people. She is in it for the glory. For each unit of effort she puts into her work, she gets a utility benefit of 1000 (which is inclusive of the 10 that she gets for being a member of society, plus a payoff of 990 in glory). If she exerts effort e, she also suffers cost e^2. (a) The medical researcher’s payoff from exerting effort e is 1000e − e^2. What level of effort, e∗, will she exert? (b) Suppose a policymaker who was a committed utilitarian (including caring about the medical researcher’s glory, since the medical researcher cares about it) was to choose the level of effort the medical researcher exerts. That policymaker would add up the total utility in society (including the medical researcher’s utility)…arrow_forward
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co