ECON 430 University of California Los Angeles Experimental Design Table Question

I’m working on a economics question and need support to help me study.

Billie the Experimenter wants to test whether greater financial incentives make people work harder.To do this, Billie created an experiment where subjects solve a series of logic questions. Sixtysubjects were given 15 minutes to complete 20 questions and the experimental sessions lastedapproximately 40 minutes. Subjects also received a $6.00 show-up payment.There are two treatments. In Treatment #1, a subject is paid $1.00 for each correct answer. InTreatment #2, a subject is paid $5.00 for each correct answer. Billie then compared performance inTreatment #1 to performance in Treatment #2.Overall, Billie finds that performance in Treatment #2 is better than performance in Treatment #1(i.e. the number of correctly solved problems was higher in Treatment #2). Billie concludes thatlarge financial incentives lead people to work harder, thereby improving their performance.

Based on this information, in 250 words or less,

1) Describe ONE alternative explanation for Billie’s empirical result observed above. Clearlystate any assumptions you make in your answer about the design, procedure, or subject pool.

2) Design an experimental treatment or set of treatments that would allow you to clarify theresults between Billie’s explanation of “working harder” and your alternative explanation, please include an experimental design table (not included in word count)