Will cash bonuses speed the return to work of unemployed people? A state departm

Question

Will cash bonuses speed the return to work of unemployed people? A state department of labor notes that, last year, 41% of people who filed claims for unemployment insurance found a new job within 15 weeks. As an experiment, the state offers $500 to people filing unemployment claims if they find a job within 15 weeks. The percent who do so increases to 53%. Confounding with these lurking variables makes it impossible to say whether the $500 bonus really caused the increase. Why is this so? (Select all that apply.)

The lurking variable is the changes in the economy that occur over time.

Making a comparison between the treatment group and the percent finding work last year is not helpful.

The lurking variable is occupation.

Making a comparison between the treatment group and the percent finding work last year is helpful.

We would need to continue to make the $500 bonus offer to people who have not found a new job within 15 weeks.

We would need to make the $500 bonus offer to some people and not to others and compare those two groups.

Explanation / Answer

Lurking variables are one kind of extraneousvariable. They are neither the explanatory nor response variable of interest, but a third variable that lurks beneath the surface, making the relationship between the variables that are being studied seem stronger or weaker than it actually is.

Making a comparison between the treatment group and the percent finding work last year is not helpful. Over a year, many things can change. (In order to draw conclusions, we would need to make the $500 bonus offer to some people and not to others, and compare the two groups.

SO here "We would need to make the $500 bonus offer to some people and not to others and compare those two groups." and "Making a comparison between the treatment group and the percent finding work last year is not helpful." option is correct.

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