Answer to Question 1
There are three general concerns about counterbalancing. First, complete counterbalancing can be difficult or impossible with a large number of treatment conditions. The number of different orders for n treatments is equal to n-factorial n(n-1)(n-2)(n-3) . . . and this number becomes extremely large for anything more than 5 or 6 treatments. Second, counterbalancing does not eliminate confounding from order effects if the order effects are asymmetrical. For example, if participation in treatment A causes a big change that carries over to treatment B, but participation in B causes only a small change that carries over to A, then the order effects are not symmetrical and will not be controlled by counterbalancing. Third, counterbalancing does not eliminate the order effects. Instead the order effects contributed to the scores of some participants but not to others. Thus, the order effects tend to increase the variance within each treatment condition, and larger variance reduces the likelihood of obtaining significant results.
Answer to Question 2
True
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