E x ample : opport u nit y cost FOU N DATION S OF IN FE R E N C E - - PowerPoint PPT Presentation

▶
e x ample opport u nit y cost
SMART_READER_LITE
LIVE PREVIEW

E x ample : opport u nit y cost FOU N DATION S OF IN FE R E N C E - - PowerPoint PPT Presentation

Dec 14, 2023 44 likes •308 views

E x ample : opport u nit y cost FOU N DATION S OF IN FE R E N C E Jo Hardin Instr u ctor The st u d y Control gro u p (75 st u dents ) presented w ith t w o options : ( A ) B uy this entertaining v ideo ( B ) Not b uy this entertaining v ideo

slide-1
SLIDE 1

Example:

  • pportunity cost

FOU N DATION S OF IN FE R E N C E

Jo Hardin

Instructor

slide-2
SLIDE 2

FOUNDATIONS OF INFERENCE

The study

Control group (75 students) presented with two options: (A) Buy this entertaining video (B) Not buy this entertaining video Treatment group (75 students) presented with slightly modied option (B): (A) Buy this entertaining video (B) Not buy this entertaining video. Keep the $14.99 for other purchases

Frederick S, Novemsky N, Wang J, Dhar R, Nowlis S. 2009. Opportunity Cost Neglect. Journal of Consumer Research

1

slide-3
SLIDE 3

FOUNDATIONS OF INFERENCE

State the hypotheses

H : Reminding students will have no impact on their spending decisions H : Reminding students will reduce the chance they continue with a purchase

Frederick S, Novemsky N, Wang J, Dhar R, Nowlis S. 2009. Opportunity Cost Neglect. Journal of Consumer Research

A

1

slide-4
SLIDE 4

FOUNDATIONS OF INFERENCE

The data

Buy DVD Not buy DVD Total Control group 56 19 75 Treatment group 41 34 75 Total 97 53 150 56/75 = 0.7467 41/75 = 0.5467

slide-5
SLIDE 5

Let's practice!

FOU N DATION S OF IN FE R E N C E

slide-6
SLIDE 6

Errors and their consequences

FOU N DATION S OF IN FE R E N C E

Jo Hardin

Instructor

slide-7
SLIDE 7

FOUNDATIONS OF INFERENCE

Opportunity cost conclusion

slide-8
SLIDE 8

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-9
SLIDE 9

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-10
SLIDE 10

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-11
SLIDE 11

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-12
SLIDE 12

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-13
SLIDE 13

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-14
SLIDE 14

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-15
SLIDE 15

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-16
SLIDE 16

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-17
SLIDE 17

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-18
SLIDE 18

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-19
SLIDE 19

FOUNDATIONS OF INFERENCE

Errors in hypothesis testing

slide-20
SLIDE 20

FOUNDATIONS OF INFERENCE

Errors in US judicial system

slide-21
SLIDE 21

Let's practice!

FOU N DATION S OF IN FE R E N C E

slide-22
SLIDE 22

Summary of

  • pportunity costs

FOU N DATION S OF IN FE R E N C E

Jo Hardin

Instructor

slide-23
SLIDE 23

FOUNDATIONS OF INFERENCE

Significance

# Calculate the p-value

  • pp_perm %>%

summarize(pvalue = mean(stat <= diff_orig)) # A tibble: 1 × 1 pvalue <dbl> 1 0.007

slide-24
SLIDE 24

FOUNDATIONS OF INFERENCE

Causation

Study was randomized (i.e. individuals were randomly assigned the choices) Nothing systematically dierent about participants in treatment and control groups Therefore, any dierence in buying rates is due to the options given (i.e. being reminded to save)

slide-25
SLIDE 25

FOUNDATIONS OF INFERENCE

Random sample

150 individuals in the sample were not randomly sampled from all people In order to generalize, we need more information about the students and who they represent

slide-26
SLIDE 26

Let's practice!

FOU N DATION S OF IN FE R E N C E