Experiments and Designs

Claims in the natural sciences can be tested as the relationships between phenomena are not
as complex as business studies.
- Example: we often see hypotheses in the natural sciences can be represented by
mathematical formulas
In business studies, concepts exist in a more complex environment and cause an amalgam of
constructs that do not necessarily demonstrate a direct relationship

- The may result in the presence of several alternative explanations or risks to internal
validity.

3 Principles:

1. Manipulating Independent variables

2. Comparison between different levels of independent variables
3. Random assignments of participants

Four different types of experiments:

1. A/B studies

- The aim is to compare the value of the dependent variable when we have different
levels of independent variables by having other variables constant
- Two group with significantly different levels of independent variables and measure
the dependent variables. \
- Special type of AB studies:
o Compare the value of the dependent variable in binary value of independent
variable where independent variable is of the binary type of yes/no, 0/1,
true/false, et cetera.
 Group b that has not been exposed to the independent variable is the
control group.

2. Pre/post studies

- Studies repeated measures.

- We measure the dependent variables before and after exposing the participants to
the independent variable.
- Issue:
o The pre-evaluation of participants may result in influencing their behavior.
- Use SOLOMON ABCD Design;
o Mixes A/B and pre/post studies.
  In these studies, we put participants in two groups of A/B and C/D.
We run the pre-evaluation on C/D but not on A/B. A/B participants
are then ones with and without exposure to the independent
variable. If we are able to get similar results, then its fair to say that
the result is valid.
 If they do not work. There are other types of study designs that are
outside of the scope of this course. In such situations, we need to be
more innovative and get out of the comfort zone of these premade
study designs to build a study that can provide us with reasonable
trusted results.

3 Principles behind a good design of an experiment:

1. Manipulation

- Purpose of manipulation is to demonstrate that the cause generates that effect

- Once when you have control, you can then remove any temporal ambiguity and
prove the cause is precedent of the effect

Two types:

- Manipulation of independent variables

- Keeping the variables out of the scope of interest constant

2. Comparison

- Purpose of comparison is to show that effect does not occur naturally or for a
different reason.
- We try to demonstrate that if you are not academic, you do not like comedy shows
- Comparison provides a strong demonstration for validity of a casual relation

3. Random Assignment

- Randomization ensures that the effect does not happen only in a particular group of
the participants with special characteristics.
- A causal relationship is demonstrated more significantly if we can show that not only
by the effect appears in the presence of the cause which is manipulation, but also
disappears in the absence of the cause.

Randomized Control:

- Choosing subjects by random.

Control in study design is concerned with the two out of the three principles of experimental
design:
- Manipulation
- Randomization

More Complicated Designs

Factorial Design:

- Look at, combined effects of more than one independent variable on a dependent
variable.

- Studies the impact of several factors on an effect.

Repeated Measure Design:

- Expose participants not only to one value of independent variable but to several
values.

- Involves participants from different levels of an independent variable