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How to establish causality
Needs to prove 3 things:
Concomitant variance (aka Correlation)
Precedence (if X causes Y, then X must occur before that)
Elimination of other possible factors
Z (extraneous factors) do not cause Y
Kinds of Extraneous Factors
History
Maturation
Instrument variation
Selection Bias
Mortality
Testing effects
Regression to the mean
Types of Experimental Designs
Pre-experimental
Very little control over extraneous factors
True experimental
Introduction of Control Group
Random assignment of subjects to treatment
Pre Experimental <
One-shot design
One group pre and post test
True experimental
Before and after with CG
After only with CG
One shot Design
Do something and observe
One group pre and post test
measure/ record the pre, do something and then measure the post again
Before and After CG
Randomly choose ppl, and assign them into either EG (exposed group) or CG ( control group)
After only with CG
Grab random ppl and assign into EG and CG but only record their responses after exposure
Lab experiments are
Hard to do and lack external validity
Test Markets provide
Alt to Lab experiments
Benefits of Lab tests
Opportunity to