Question

4. For the following experiment, identify the experimen- tal units, the treatments, the response, and the random assignment. An investment club decided to compare investment strate gies. Starting with nine equal investment amounts, three invested in the "dogs of the Dow"-stocks in the Dow In- dustrial average that had been underperforming relative to the rest of the Dow average. The relative amounts to invest in each of the stocks were chosen randomly and differently for each fund. Three funds invested following the advice of a TV investment show host, again choosing the specific stocks and allocations randomly for the three funds. And three funds invested by throwing darts at a page from the Wall Street Journal that listed stocks on the NYSE, and in vested in each of the stocks hit by a dart, throwing a differ- ent set of darts for each of the three funds. At the end of six months the funds were compared.

Answer 1

of the erpeimen ecin hla have control0ed that -fac+8 ใntee ExperSrn ent al design. nine gavual ntestment amounts wese. allecated to "tho three alfesent treatments aJlhich avord mue vae latfon ang th -heat ments and also the 을nvestment fg each level 0f tte Randomization γ0 ndon allocation of treatment to the expesiment units ttese handoitatton 2s used by assigning le fnvecHment amount Tardony to the txpextments s uced by repeating each treat ment thyice 0