Organizational Behavior
OER 2019 Edition
ISBN: 9781947172715
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 15, Problem 4CTQ
Identify and use relevant concepts from this chapter as well as your own thoughts and analysis to diagnose the scandal at Wells Fargo. How could such a scandal have occurred in the first place? Who and what was at fault?
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Difference-in-Difference
In the beginning of 2001, North Dakota legalized fireworks. Suppose you are interested in
studying the effect of the legalizing of fireworks on the number of house fires in North
Dakota. Unlike North Dakota, South Dakota did not legalize fireworks and continued to ban
them. You decide to use a Difference-in-difference (DID) Model. The numbers of house fires
in each state at the end of 2000 and 2001 are as follows:
Number of house fires in Number of house fires in
Year
North Dakota
2000
2001
35
50
South Dakota
54
64
a. What is the change in the outcome for the treatment group between 2000 and 2001?
Show your working for full credit. (10 points)
b. Can we interpret the change in the outcome for the treatment group between 2000
and 2001 as the causal effect of legalizing fireworks on number of house fires?
Explain your answer. (10 points)
C.
Regression Discontinuity
Birth weight is used as a common sign for a newborn's health. In the United States, if a baby
has a birthweight below 1500 grams, the newborn is classified as having “very low birth
weight". Suppose you want to study the effect of having very low birth weight on the number
of hospital visits made before the baby's first birthday. You decide to use Regression
Discontinuity to answer this question. The graph below shows the RD model:
Number of hospital visits made before baby's first birthday
5
1400
1450
1500
1550
1600
Birthweight (in grams)
a. What is the running variable? (5 points)
b. What is the cutoff? (5 points)
T
What is the discontinuity in the graph and how do you interpret it? (10 points)
Chapter 15 Solutions
Organizational Behavior
Ch. 15.1 - Define the components of the internal and the...Ch. 15.1 - What factors within the economic environment...Ch. 15.1 - Why do demographic shifts and technological...Ch. 15.2 - What factors within the economic environment...Ch. 15.2 - Why do change and shifts and technological...Ch. 15.3 - Why does the matrix structure have a dual chain of...Ch. 15.3 - How does a matrix structure increase power...Ch. 15.3 - What are advantages of a formal committee...Ch. 15.4 - Identify the six major organizational structures.Ch. 15.4 - Explain the McKinsey 7-S model.
Ch. 15.5 - How can employee diversity give a company a...Ch. 15.5 - Explain the concept of hiring for fit as it...Ch. 15.5 - What are some organizational issues that must be...Ch. 15 - Explain how several current environmental forces...Ch. 15 - What are ways to classify and describe how...Ch. 15 - What are a few industries and/or organizations...Ch. 15 - What are some major differences between organic...Ch. 15 - Which organization would you work best in, an...Ch. 15 - What are some advantages and disadvantages of...Ch. 15 - Do you think its true that every organization has...Ch. 15 - Why have functional structures been criticized for...Ch. 15 - What are some advantages and disadvantages of...Ch. 15 - How is a product structure one type of a...Ch. 15 - What are some disadvantages in working in a matrix...Ch. 15 - What advantages do matrix structures have compared...Ch. 15 - What advantages do geographic structures have...Ch. 15 - What are issues that working in a networked team...Ch. 15 - In what ways is a virtual organizations and...Ch. 15 - What major trends discussed at the end of this...Ch. 15 - What purposes does an organizations culture serve...Ch. 15 - How does Exhibit 15.16 facilitate an understanding...Ch. 15 - What happened at Wells Fargo with regard to past...Ch. 15 - What internal dimensions of the company were part...Ch. 15 - How might the organizational structure of the...Ch. 15 - Identify and use relevant concepts from this...Ch. 15 - Suggest some solution paths the company might...
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- Dummy variables News reports claim that in the last year television watching has increased. You believe that rising unemployment during Covid may be one of the causes for this. Suppose you are interested in looking at the effect of being unemployed on the hours spent watching Netflix per day. You collect data on 10,000 people from Chicago who are between the age of 20 and 60. You define the dummy variable Unemployed which takes the value 1 for those who are unemployed and 0 for those who are employed. Equation 1: Hours spent watching Netflix₁ = ßo + B₁Unemployed; + ε¿ Following is the output for equation 1: reg hours spent_watching_netflix unemployed Source SS df MS Number of obs 10,000 F(1, 9998) = 14314.03 Model Residual 3539.70065 2472.39364 9,998 1 3539.70065 .247288822 Prob F R-squared == 0.0000 = 0.5888 Total 6012.09429 9,999 . 601269556 Adj R-squared Root MSE = 0.5887 .49728 hours spen~x Coef. Std. Err. t P>|t| [95% Conf. Interval] unemployed cons 1.189908 .0099456 119.64…arrow_forwardHow do you distinguish between capital expenditures and revenue expenditures? need helparrow_forwardDummy variables News reports claim that in the last year television watching has increased. You believe that rising unemployment during Covid may be one of the causes for this. Suppose you are interested in looking at the effect of being unemployed on the hours spent watching Netflix per day. You collect data on 10,000 people from Chicago who are between the age of 20 and 60. You define the dummy variable Unemployed which takes the value 1 for those who are unemployed and 0 for those who are employed. Equation 1: Hours spent watching Netflix₁ = ßo + B₁Unemployed; + ε¿ Following is the output for equation 1: reg hours spent_watching_netflix unemployed Source SS df MS Number of obs 10,000 F(1, 9998) = 14314.03 Model Residual 3539.70065 2472.39364 9,998 1 3539.70065 .247288822 Prob F R-squared == 0.0000 = 0.5888 Total 6012.09429 9,999 . 601269556 Adj R-squared Root MSE = 0.5887 .49728 hours spen~x Coef. Std. Err. t P>|t| [95% Conf. Interval] unemployed cons 1.189908 .0099456 119.64…arrow_forward
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