Problem 5BSC
In Exercise, test the given claim.
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 STATDISK 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 
Women Given a Single 100Yuan Bill 
60 
15 
Women Given 100 Yuan in Smaller Bills 
68 
7 
Solution 5BSC
As per the given information we have P value is 0.0648. On comparing this with significance level we find that....