Denomination Effect In a study of the “denomination effect” described in the Chapter Problem, 150 women in China were given either a single 100 Yuan bill or a total of 100 Yuan in smaller bills. The value of 100 Yuan is about $15. The women were given the choice of spending the money on specific items or they could keep the money. The results are summarized in the table below, and XLSTAT results are provided in the screen display. Use a 0.05 significance level to test the claim that the form of the 100 Yuan is independent of whether the money was spent. What does the result suggest about a denomination effect?

Spent the Money Kept the Money Chi-square (Observed value) Chi-square (Critical value) 3.409 3.841 60 15 DF 1 7 p-value alpha 0.065 0.05 Women Given a Single 100-Yuan Bill Women Given 100 Yuan in Smaller Bills 68