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d) Experiments are useful in helping determine if people have responded due to a stimulus or if they would have responded even without the stimulus.

d) Experiments are useful in helping determine if people have responded due to a stimulus or if they would have responded even without the stimulus. Design an experiment that could demonstrate what proportion of people have responded to a stimulus. These people could be customers or employees within a company. Examples could be an advertising campaign to customers, or a policy of flexible work hours for employees. Requirements:

i) How would you pick the treatment and control groups? Fill in the table below to indicate the number of people and 3 important characteristics that describe each group (10 marks)

Control Group

Treatment Group

Number of People

Characteristic 1:

Characteristic 2:

Characteristic 3:

ii) Predict the results and state the managerial conclusion you could make from this result. Use the table below to indicate the change in behavior you expect to observe. (10 marks)

Control Group

Treatment Group

Observed behavior before treatment:

Observed behavior after treatment:

iii) State the managerial action you could take from the results of your experiment. Briefly describe a useful follow-up experiment that would further deepen understanding of why people behaved in the manner observed.

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