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Explain how you might design a statistical test ot examine the presence of a cer

ID: 3047328 • Letter: E

Question

Explain how you might design a statistical test ot examine the presence of a certificate-of-need law on hospital care expeditures. What would be your main hypothesis in this experiment? What would be the unit of analysis in our experiment? What variables would you specify on the right-hand side of the estimation equation to act as control variables? What would be your identification strategy to eliminate any concerns about reverse causation or a third variable affecting both the presence of a CON law and hospital expenditures?

Explanation / Answer

s a broadcaster, you may conduct statistical analyses to determine if there are significant differences between the effectiveness of different advertising media. Further, you may need to extend the study to see if the effectiveness of the advertising media is affected by another factor. This situation can be used to build a t test, a one-way ANOVA and a two-way ANOVA as shown below

(a) t- test

Research Question

Is there a significant difference between the effectiveness of radio and TV as advertising media?

Alternate Hypothesis

There a significant difference between the effectiveness of radio and TV as advertising media

Null Hypothesis

There is no significant difference between the effectiveness of radio and TV as advertising media

(b) One-Way ANOVA

Research Question

Is there a significant difference between the effectiveness of radio, TV and newspaper as advertising media?

Alternate Hypothesis

At least two of the three advertising media differ in their effectiveness

Null Hypothesis

There is no significant difference between the effectiveness of radio, TV and newspaper as advertising media

(c) Two-Way ANOVA

Research Question

Is there a significant difference between the effectiveness of radio, TV and newspaper as advertising media? Further, Do they have different effects on men and women?

Alternate Hypothesis

At least two of the three advertising media differ in their effectiveness and at least two of the three advertising media differ in the way they influence men and women.

Null Hypothesis

The three advertising media have the same effectiveness and they influence men and women in the same way.

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