Reconsider the previous exercise. In the article that appeared in the Journal of Behavioral Decision Making, the researchers did not report the sample size of each group. The following 2 × 2 table gives a set of observed counts that are consistent with the rest of the study data. This table can be found in the file Rebate.

a. Use the Two Proportions applet to test the hypotheses stated in the previous question. Be sure to specify the statistic you used and its value (from the study). Also, find and report the p-value.

b. Next, use the Multiple Proportions applet to test the hypotheses stated in the previous question. Be sure to specify the statistic you used and its value (from the study). Also, find and report the p-value.

c. How do the p-values from parts (a) and (b) compare? Are they about the same or very different? Explain why.

Data from previous exercise

Do people tend to spend money differently based on perceived changes in wealth? In a study conducted by researchers Epley et al. (2006), 47 Harvard undergraduates were randomly assigned to receive either a bonus check of $50 or a rebate check of $50. A week later, each student was contacted and asked whether they had spent any of that money, and if yes, how much. In this exercise we will focus on whether or not they had spent any of that money as the response variable of interest. It turned out that 36% of those in the bonus group spent none of the money, compared to 73% in the rebate group.

Transcribed Image Text:

Bonus Rebate Total Saved 16 25 Spent 16 6 22 47 Total 25 22