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Related Concept Videos

Surveys02:16

Surveys

Often, psychologists develop surveys as a means of gathering data. Surveys are lists of questions to be answered by research participants, and can be delivered as paper-and-pencil questionnaires, administered electronically, or conducted verbally. Generally, the survey itself can be completed in a short time, and the ease of administering a survey makes it easy to collect data from a large number of people.
Survey Safety01:28

Survey Safety

Surveying near highways, rough terrain, or power lines involves significant risks. Working along highways is particularly dangerous and requires the use of warning signs and flagmen. It is safest to avoid working directly on roads and use offsets whenever possible. When highway work is unavoidable, it must follow all safety guidelines. Surveyors should wear bright clothing, such as orange reflective vests, to ensure visibility to motorists, coworkers, and hunters. In construction zones, wearing...
Types of Biopharmaceutical Studies: Controlled and Non-Controlled Approaches01:23

Types of Biopharmaceutical Studies: Controlled and Non-Controlled Approaches

Biopharmaceutical studies constitute a vital field aiming to enhance drug delivery methods and refine therapeutic approaches, drawing upon diverse interdisciplinary knowledge. In research methodologies, the choice between controlled and non-controlled studies significantly influences the study's reliability and accuracy.
Non-controlled studies, commonly employed for initial exploration, lack a control group, rendering them susceptible to biases and external influences. In contrast, controlled...
Relative Risk01:12

Relative Risk

Relative risk (RR) is a statistical measure commonly used in epidemiology to compare the likelihood of a particular event occurring between two groups. This metric is important for evaluating the relationship between exposure to a specific risk factor and the probability of a particular outcome. It plays a crucial role in medical research, public health studies, and risk assessment. Relative risk quantifies how much more (or less) likely an event is to occur in an exposed group compared to an...
Sample Proportion and Population Proportion01:20

Sample Proportion and Population Proportion

Collecting samples or responses from an entire population takes significant time and effort, so a researcher collects responses from only a sample of that population. Suppose a study needs to collect information about a specific mobile application. After sample collection, the researcher analyzes the data and discovers that most individuals in the sample use that specific mobile application. The sample proportion measures the number of individuals in a sample who either use or don't use the...
Margin of Error01:27

Margin of Error

The margin of error is also called the maximum error of an estimate. The margin of error is the maximum possible or expected difference between the observed sample parameter value and the actual population parameter value. For proportion, it is the maximum difference between the value of sample proportion obtained from the data and the true value of population proportion. As the true value of the population parameter is not known, the margin of error is calculated using the sample statistic.

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Related Experiment Video

Updated: Jun 13, 2026

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations
09:07

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations

Published on: September 16, 2015

Imputing Risk Tolerance From Survey Responses.

Miles S Kimball1, Claudia R Sahm, Matthew D Shapiro

  • 1Miles S. Kimball and Matthew D. Shapiro are Professors, Department of Economics, and Research Professors, Survey Research Center, University of Michigan, Ann Arbor, MI 48109, and Research Associates, National Bureau of Economic Research, Cambridge, MA 02138. Claudia R. Sahm is Economist, Division of Research and Statistics, Federal Reserve Board, Washington, DC 20551.

Journal of the American Statistical Association
|April 22, 2010
PubMed
Summary
This summary is machine-generated.

This study introduces a new way to measure how much people tolerate risk using survey data. This cardinal measure of risk tolerance helps explain household financial decisions, like asset allocation.

Related Experiment Videos

Last Updated: Jun 13, 2026

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations
09:07

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations

Published on: September 16, 2015

Area of Science:

  • Behavioral Economics
  • Econometrics
  • Survey Methodology

Background:

  • Economic theory emphasizes the importance of risk preferences.
  • Existing survey measures often yield ordinal, not cardinal, metrics of risk tolerance.
  • Accurate measurement of risk tolerance is crucial for understanding economic behavior.

Purpose of the Study:

  • To develop a cardinal proxy for relative risk tolerance.
  • To address measurement error in survey-based risk tolerance estimates.
  • To demonstrate the utility of this proxy in explaining household financial decisions.

Main Methods:

  • Utilized hypothetical income gamble data from the Health and Retirement Study.
  • Constructed a cardinal proxy for individual risk tolerance.
  • Employed methods to account for measurement error and ensure consistent regression estimates.

Main Results:

  • Developed a novel cardinal measure of relative risk tolerance.
  • Successfully accounted for measurement error in risk tolerance estimation.
  • The risk tolerance proxy significantly explains variations in household asset allocation.

Conclusions:

  • The developed cardinal risk tolerance measure offers a more precise tool for economic research.
  • Accounting for measurement error enhances the reliability of risk preference estimates.
  • Risk tolerance is a key determinant of household financial behavior and asset allocation.