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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