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Exercise

Offering a Higher Credit Card Limit: Quantifying Noncompliance Concerns

CreditCo, a large credit card company, decides to run an experiment. It sends an offer in the mail to a random group of 50% of its customers: those in the treatment group are invited to navigate to a webpage and opt in for a 10% higher credit limit. CreditCo wants to see how credit balances and late payments are impacted six months later as a result of the experiment.

Suppose that, of the group that received the mail offer, 40% of people opted in. Do you think that noncompliance will be a problem for CreditCo's analysis? Why or why not?

Instructions
50 XP
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