A CEO is unsure whether to allow workers to work from home,…

A CEO is unsure whether to allow workers to work from home, or require them to work form home, so she runs an experiment. People who participate are randomly assigned to treatment or control. In the treatment arm, people will be allowed to work from home, and in the control arm, people will not to be allowed to work from home. Participation in the experiment is voluntary. After the experiment, we have the following data.   Group Sample size Average performance score Treatment (optional work from home) 324 4.5 Control (no optional work from home) 325 4.3 Did not participate in experiment 200 4.6 The “did not participate” also does not work from home. Should we use them in our analysis of the effects of working from home?  

For many years, a company had a very generous health insuran…

For many years, a company had a very generous health insurance plan, with no deductible. In 2023, the company introduced a $3000 deductible for all employee.  The company wants to know how the deductible affected health care spending. They have data on all their employees, but no other data. What identification strategy would be most appropriate?

Allison, who was recently stung by a bee in her neighbor Gia…

Allison, who was recently stung by a bee in her neighbor Gia’s garden, now tenses with fear every time she passes Gia’s house. As weeks go by without her getting stung again, however, the association weakens and Allison begins to relax. This process is called