Question

A light bulb distributor was given a study from an LED bulb manufacturer showing that LED light bulbs are better for the environment than traditional bulbs. Is there an incentive for this study to be biased? Why or why not?
No, because neither company benefits from the survey results.

No, because the light bulb distributor trusts the LED bulb manufacturer.

Yes, because the LED bulb manufacturer may benefit from the survey results.

Yes, because the light bulb distributor wants to become a "green" company.

Answer 1

Answer:

C. Yes, because the LED bulb manufacturer may benefit from the survey results.

Step-by-step explanation:

We are given that,

'An LED bulb manufacturer gives the study with the result that LED light bulbs are better for the environment than the traditional bulbs'.

Now, if the light bulb distributor further shows the result to the consumers, they would like to buy LED bulbs.

So, the demand for the LED bulbs would increase. For that, the distributor would have to order more LED bulbs from the manufacturer.

Thus, the supply of LED bulbs would increase for the manufacturer resulting in increase in revenue.

Hence, the LED manufacturer may benefit from the survey result.

Answer 2

A light bulb distributor was given a study from an LED bulb manufacturer showing that LED light bulbs are better for the environment than traditionalbulbs. Is there an incentive for this study to be biased? Why or why not?

Yes, because the LED bulb manufacturer may benefit from the survey results.

If the light bulb distributor will decide get more stock of LED bulb due to the study given by the LED company, then, the LED company will benefit from it.