Answer to Question #213765 in Economics for Meher

Question

(a)  The selection bias in this example is likely to be

           i. zero because herders who choose to buy the phone are not different from and have equal income, on average, to herders who choose not to buy the phone.

         ii. negative because herders who choose to buy the phone are different in ways that give them higher income, on average, than herders who choose not to buy the phone.

        iii. positive because herders who choose to buy the phone are different in ways that give them higher income, on average, than herders who choose not to buy the phone.

        iv. dependent on actual levels of poverty in Nepal and Tibet after the pilot program of UThere phones is carried out.

Answer 1

The selection bias in this example is likely to be positive because herders who choose to buy the phone are different in ways that give them higher income, on average, than herders who choose not to buy the phone.

So, the correct answer is iii.