An experiment was conducted with credit card holders who were at risk of defaulting on their cards due to late payments. In the control condition, participants received their statement with a “late payment warning” letter in the envelope on the 1st of the month. In the treatment condition, they received a 2d letter a week later informing them that the late fees would be waived if they made all outstanding payments by the end of the month. 45% sent in a payment by the end of the month in the control condition, compared to 51% in the treatment condition (p < .0001). Nothing else differed between the two conditions. 

Evaluate each of the following possible conclusions about the results of the experiment as either: reasonable, possible but requires strong additional assumptions, or just wrong. If wrong, explain why it’s wrong. If the conclusion is possible but requires strong additional assumptions, specify the assumptions required.

Answer rating: 100% (QA)

Conclusion The late payment warning letter was ineffective Evaluation Just wrong The experiment compared the effectiveness of two different interventi... View the full answer