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Corporate sustainability and firm characteristics. Refer
Chapter 9, Problem 7E(choose chapter or problem)
Problem 7E
Corporate sustainability and firm characteristics. Refer to the Business and Society (March 2011) study on how firm size and firm type impact corporate sustainability behaviors, Exercise 1.26 (p. 27). Certified Public Accountants (CPAs) were surveyed on their firms’ likelihood of reporting sustainability policies (measured as a probability between 0 and 1). The CPAs were divided into four groups depending on firm size (large or small) and firm type (public or private): large/public, large/ private, small/public, and small/private. One goal of the analysis was to determine whether the mean likelihood of reporting sustainability policies differs depending on firm size and firm type. Identify each of the following elements for this study:
a. Experimental units
b. Response variable
c. Factor(s)
d. Factor levels
e. Treatments
Questions & Answers
QUESTION:
Problem 7E
Corporate sustainability and firm characteristics. Refer to the Business and Society (March 2011) study on how firm size and firm type impact corporate sustainability behaviors, Exercise 1.26 (p. 27). Certified Public Accountants (CPAs) were surveyed on their firms’ likelihood of reporting sustainability policies (measured as a probability between 0 and 1). The CPAs were divided into four groups depending on firm size (large or small) and firm type (public or private): large/public, large/ private, small/public, and small/private. One goal of the analysis was to determine whether the mean likelihood of reporting sustainability policies differs depending on firm size and firm type. Identify each of the following elements for this study:
a. Experimental units
b. Response variable
c. Factor(s)
d. Factor levels
e. Treatments
ANSWER:
Problem 7E
Corporate sustainability and firm characteristics. Refer to the Business and Society (March 2011) study on how firm size and firm type impact corporate sustainability behaviors, Exercise 1.26 (p. 27). Certified Public Accountants (CPAs) were surveyed on their firms’ likelihood of reporting sustainability policies (measured as a probability between 0 and 1). The CPAs were divided into four groups depending on firm size (large or small) and firm type (public or private): large/public, large/ private, small/public, and small/private. One goal of the analysis was to determine whether the mean likelihood of reporting sustainability policies differs depending on firm size and firm type. Identify each of the following elements for this study:
a. Experimental units
b. Response variable
c. Factor(s)
d. Factor levels
e. Treatments
Step-by-step solution
Step 1 of 5
(a)
Experimental units:
An experiment is a planned activity designed to compare treatments. In an experiment, the experimenter creates difference in the experimental units involved by subjecting them to different treatments and then observing the effects of such treatments on the measure of outcomes. Here, the Certified Public Accountants (CPAs) are considered as the experimental units.