A researcher studying the effect of price cuts on consumers' expectations makes up two different histories of the store price of a hypothetical brand of laundry detergent for the past year. Eight students in a business class view one or the other price history on a computer. Some students see a steady price, whereas others see regular sales that temporarily cut the price. Students are asked the price they would expect to pay. This is an example of:
A)a matched pairs experiment.
B)a two-factor design.
C)a randomized comparative experiment.
D)a randomized observational study.

Question

Quizplus · Accepted Answer

This is a randomized comparative experiment because the researcher is comparing the effects of two different treatments (steady price vs. regular sales) on a response variable (the price students expect to pay) and the participants (students) are randomly assigned to view one or the other price history.

A Researcher Studying the Effect of Price Cuts on Consumers