In Exercise? est 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? S K p e e p n t t t t h h e e M M o o n n e e y y Women Given a 6 1 Single 100-Yuan 0 5 Bill Women Given 100 6 Yuan in Smaller 7 8 Bills

Solution 5BSC Step1: From the above given problem we have 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, Spent the money Kept the money Women given a single 100-yuan 60 15 bill Women given yuan in smaller bills 68 7 Step2: Our aim is 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.. H 0 the form of 100 Yuan is independent of whether the money was spent. H : the form of 100 Yuan is dependent of whether the money was spent. 1 Step3: goodness of fit can be calculated by using STATDISK and it is given by Conclusion: 2 2 From the output result we have = 3.4091 and critical value is = 3.8414, p value is p = 0.0648 comparing p value with level of significance of p value(p = 0.0648) is greater than level of significance = 0.05. Hence, we accept null hypothesis that indicates that the form of 100 Yuan is dependent of whether the money was spent.we can say that we do not have sufficient evidence that to accept the claim of denomination effect.