HBX-Economics Questions And Answers|Latest
Update
An anonymous survey question asking children, "what's your favorite toy and why do you like to
play with it?
is correct
This question is likely to evoke a truthful response and allow your company see some common
features of toys that kids would value.
In which of the following situations is an auction especially effective? Select all that apply.
The seller is time-sensitive
is correct
Auctions are effective when a seller needs to sell an item by a certain date. A seller could use a
fixed price when he or she is not under time pressure.
Buyers' valuation of the auction item is within a narrow range.
is correct
An auction will be especially effective if buyers' valuations of the item are close together. This
ensures that the sale price will be close to the WTP of the second highest bidder (based on the
Revenue Equivalence Result).
The seller does not know the WTP of its potential customers.
,HBX-Economics Questions And Answers|Latest
Update
is correct
Auctions are good for items for which there is not an easily available market price. The auction
format helps the seller to reveal the top buyer willingness to pay.
Which of the following situations does NOT display confirmation bias? Select all that apply.
A CEO hires an independent third party to develop an anonymous survey assessing her
employees' job satisfaction.
is correct
This scenario does not hint at any bias. By asking a third party to conduct the survey and making
it anonymous, the CEO will likely be able to obtain truthful information about her workers'
satisfaction with the company.
A CEO hires an independent third party to develop an anonymous survey assessing her
employees' job satisfaction.
is correct
This scenario does not hint at any bias. By asking a third party to conduct the survey and making
it anonymous, the CEO will likely be able to obtain truthful information about her workers'
satisfaction with the company.
, HBX-Economics Questions And Answers|Latest
Update
In what way does randomization help an experimenter to overcome the "missing variables"
problem? Select all that apply. Randomization helps to account for systematic differences
across groups of interest.
Randomization helps control for unobserved variables not being measured in the experiment.
Randomization helps to ensure that the impact measured in a treatment vs. control group is due
solely to the variable that is manipulated in the experiment.
is correct
Randomization makes it so that the effect of other individual-specific variables, should, on
average, cancel out across the treatment and control groups.
Randomization helps to eliminate the adverse effects of sample selection/selection bias.
is correct
By randomly creating groups, experimenters can avoid biased samples that may result, for
example, when individuals select into groups based on observable differences.
cross price elasticity Measures the responsiveness of the quantity demanded for a good to
a change in the price of another good
Update
An anonymous survey question asking children, "what's your favorite toy and why do you like to
play with it?
is correct
This question is likely to evoke a truthful response and allow your company see some common
features of toys that kids would value.
In which of the following situations is an auction especially effective? Select all that apply.
The seller is time-sensitive
is correct
Auctions are effective when a seller needs to sell an item by a certain date. A seller could use a
fixed price when he or she is not under time pressure.
Buyers' valuation of the auction item is within a narrow range.
is correct
An auction will be especially effective if buyers' valuations of the item are close together. This
ensures that the sale price will be close to the WTP of the second highest bidder (based on the
Revenue Equivalence Result).
The seller does not know the WTP of its potential customers.
,HBX-Economics Questions And Answers|Latest
Update
is correct
Auctions are good for items for which there is not an easily available market price. The auction
format helps the seller to reveal the top buyer willingness to pay.
Which of the following situations does NOT display confirmation bias? Select all that apply.
A CEO hires an independent third party to develop an anonymous survey assessing her
employees' job satisfaction.
is correct
This scenario does not hint at any bias. By asking a third party to conduct the survey and making
it anonymous, the CEO will likely be able to obtain truthful information about her workers'
satisfaction with the company.
A CEO hires an independent third party to develop an anonymous survey assessing her
employees' job satisfaction.
is correct
This scenario does not hint at any bias. By asking a third party to conduct the survey and making
it anonymous, the CEO will likely be able to obtain truthful information about her workers'
satisfaction with the company.
, HBX-Economics Questions And Answers|Latest
Update
In what way does randomization help an experimenter to overcome the "missing variables"
problem? Select all that apply. Randomization helps to account for systematic differences
across groups of interest.
Randomization helps control for unobserved variables not being measured in the experiment.
Randomization helps to ensure that the impact measured in a treatment vs. control group is due
solely to the variable that is manipulated in the experiment.
is correct
Randomization makes it so that the effect of other individual-specific variables, should, on
average, cancel out across the treatment and control groups.
Randomization helps to eliminate the adverse effects of sample selection/selection bias.
is correct
By randomly creating groups, experimenters can avoid biased samples that may result, for
example, when individuals select into groups based on observable differences.
cross price elasticity Measures the responsiveness of the quantity demanded for a good to
a change in the price of another good
