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5. In 1992, Louisiana offered a tax credit to film production companies to shoot their productions
in the
state. Since then, many states began to provide tax incentives to entice film and television
companies to
move their productions out of California and New York. You want to find out the economic
impacts of
state motion picture incentive programs.
a) Develop one hypothesis, identify the X and Y variables (and their relationship), and two
lurking
variables (explain if they are spurious or confounding variables).
b) Pick a research design and explain how do you collect and analyze the data.
c) Identify the level of measurements for your X, Y and lurking variables.
d) Identify two possible threats to the internal validity of your research design and explain how
effectively your design may handle these threats.

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