Chapter 4.2, Problem 64E

(a)

To determine

To describe how you would randomly assign the subjects to the treatments using slips of paper.

Explanation of Solution

In this study the researchers want to find out that if people often uses round prices as the first offer in a negotiation or not.

So, the researchers could have randomly assigned the subjects to the treatments using slips of paper by;

For this experiment, each of three offers can be thought as three treatments and random allocation of these treatments are required. Using slip of paper technique, each of three treatments can be written on separate sheets of paper and each individual will be asked to pick a paper from that three pieces.

(b)

To determine

To describe how you would randomly assign the subjects to the treatments using technology.

Explanation of Solution

In this study the researchers want to find out that if people often uses round prices as the first offer in a negotiation or not.

So, the researchers could have randomly assigned the subjects to the treatments using technology by;

Using technology, random allocation can be done by random number drawing technique. A random number can be drawn from uniform( $0,0.9$ ) and if the number is within $0\text{ to }0.3$ , go with first choice. If the number is within $0.3-0.6$ , assign second choice and else third. By this process, those three treatments can be allocated randomly to different participants.

(c)

To determine

To describe how you would randomly assign the subjects to the treatments using Table D.

Explanation of Solution

In this study the researchers want to find out that if people often uses round prices as the first offer in a negotiation or not.

So, the researchers could have randomly assigned the subjects to the treatments using technology by;

Table D is not clearly understood, possibly it would be random number table. Using a random number table, each of three treatments can be allocated randomly. Choose a one digit random number from $1\text{ to }9$ . Divide the number by $3$ , find the remainder. If the remainder is zero, choose third option, else choose the option of the reminder number. For each participant, apply this process freshly.