Consumers often create a system of budgets for various activities when deciding on consumption activities. In class we studied mental accounting, which is a theory of grouping and categorizing money and transactions so that the consumer can systematically evaluate the potential tradeoffs. Assume you are interested in how narrowly people define their mental accounts. In particular you are interested in whether clothing expenses and movie expenses are part of the same metal account or not. Design an experiment to test whether they belong to the same mental account for an average OWU student. Describe in detail the experiment and how you would analyze the data.

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To investigate whether clothing expenses and movie expenses are part of the same mental account for an average OWU Ohio Wesleyan University student we can design an experiment that involves surveying ... View the full answer