Session 5 - Chapter 4

Question 1

What is the scientific method ?

Answer 1

The scientific method is a process designed to generate knowledge through the collection and analysis of experimental data.

Scientific method effectively establishes causality.

Question 2

What are the 6 parts of the scientific method ?

Answer 2

The scientific method consists of the following six parts:

1. Ask a question
2. Do background research
3. Formulate a hypothesis
4. Conduct an experiment to test the hypothesis
5. Analyze the data from the experiment and draw conclusions
6. Communicate the findings

Question 3

What is a treatment ? Give an example

Answer 3

Treatment = Something that is administered to members of at least one participating group

Ex: It could be a salary increase

Question 4

What is a treatment effect ?

Answer 4

Treatment effect = The change in the outcome resulting from variation in the treatment

Question 5

Explain the Step 5: Analyze the data and draw conclusions

Answer 5

Step 5: Analyze the data and draw conclusions. Compare the measured outcomes between the group receiving the treatment and those who didn’t
Build a confidence interval for the treatment effect
Is there a causal relationship and how big is it?

Question 6

What is ATE ?

Answer 6

ATE = Average Treatment effect = E[Treatment Effect] = E [Outcome t i ] - [Outcome Nt i ]

Question 7

Can you give an example of selection bias ?

Answer 7

Data collection - You asked a question and you give an information like (the best is renault)

Ex: You collected data in rich area

Ex: The baseball player and its suits

Ex: Selected my respondent with a type of response I want to find

Ex: I selected a group with lower cholesterol rate before doing the experiment.

Question 8

Can you define a nonexperimental data ?

Answer 8

Nonexperimental data is data that were not produced during an experiment

• No longer able to control how the treatment is administered
• Treatment is very seldom randomly assigned, which can interfere with estimating the treatment effect

Question 9

Can you give some examples of nonexperimental business treatments and outcomes

Answer 9

Treatment : Prize - Outcome : Profits

Treatment : Prize - Outcome : Profits

Treatment : Salary - Outcome : Longevity

Treatment : Employee training - Outcome : Productivity

Question 10

Give the calcul of ATE

Answer 10

ATE = ETT + Selection bias