The Dictator Game In their book SuperFreakonomics, authors Steven Levitt and Stephen Dubner describe the research of behavioral economist John List. List recruited customers and dealers at a baseball-card show to participate in an experiment in which the customer would state how much he was willing to pay for a single baseball card. The prices
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Fundamentals of Statistics (5th Edition)
- A research question of interest is whether financial incentives can improve performance. Alicia designed a study to test whether video game players are more likely to win on a certain video game when offered a $5 incentive compared to when simply told to "do your best." Forty subjects are randomly assigned to one of two groups, with one group being offered $5 for a win and the other group simply being told to "do your best." She collected the following data from her study: $5 incentive "Do your best" Total Win 16 8. 24 Lose 4 12 16 Total 20 20 40 Based on these data, is there a relationship between the incentive and performance, using a = .05?arrow_forwardThe question is in the imagearrow_forwardA study investigated whether price affects people's judgment. Twenty people each tasted six cabernet sauvignon wines and rated how they liked them on a scale of 1 to 6. Prior to tasting each wine, participants were told the price of the wine. Of the six wines tasted, two were actually the same wine, but for one tasting the participant was told that the wine cost $10 per bottle and for the other tasting the participant was told that the wine cost $90 per bottle. The participants were randomly assigned either to taste the $90 wine first and the $10 wine second, or the $10 wine first and the $90 wine second. Differences were calculated by subtracting the rating for the tasting in which the participant thought the wine cost $10 from the rating for the tasting in which the participant thought the wine cost $90. Difference ($90 - $10) 1 0 21 4 3 1 3 3 4 1 2 2 -2 In USE SALT Carry out a hypothesis test to determine if the mean rating assigned to the wine when the cost is described as $90 is…arrow_forward
- A study investigated whether price affects people's judgment. Twenty people each tasted six cabernet sauvignon wines and rated how they liked them on a scale of 1 to 6. Prior to tasting each wine, participants were told the price of the wine. Of the six wines tasted, two were actually the same wine, but for one tasting the participant was told that the wine cost $10 per bottle and for the other tasting the participant was told that the wine cost $90 per bottle. The participants were randomly assigned either to taste the $90 wine first and the $10 wine second, or the $10 wine first and the $90 wine second. Differences were calculated by subtracting the rating for the tasting in which the participant thought the wine cost $10 from the rating for the tasting in which the participant thought the wine cost $90. Difference ($90 3 4 $10) 2 1 USE SALT 0 3 0 2 1 3 3 1 4 1 2 Find the test statistic. (Round your answer to two decimal places.) t = 2 1 -1 Carry out a hypothesis test to determine if…arrow_forwardA health policy economist interested in investigating the relationship between the cost of prescription drugs in Canada and the cost of prescription drugs in the United States has information from a random sample of 48 prescription drugs sold in both countries. For each of these drugs, the economist is examining two pieces of information: the average cost of a one-month supply of the drug in Canada, and the average cost of a one-month supply of the drug in the United States. For the sample of drugs examined, the sample correlation coefficient r relating these two pieces of information is 0.33. Test for a significant linear relationship between the two variables average prescription drug cost in Canada and average prescription drug cost in the United States by doing a hypothesis test regarding the population correlation coefficient p. (Assume that the two variables have a bivariate normal distribution.) Use the 0.05 level of significance, and perform a two-tailed test. Then complete the…arrow_forwardThe Conch Café, located in Gulf Shores, Alabama, features casual lunches with a great view of the Gulf of Mexico. To accommodate the increase in business during the summer vacation season, Fuzzy Conch, the owner, hires a large number of servers as seasonal help. When he interviews a prospective server, he would like to provide data on the amount a server can earn in tips. He believes that the amount of the bill and the number of diners are both related to the amount of the tip. He gathered the following sample information. Customer Amount of Tip Amount of Bill Number of Diners Customer Amount of Tip Amount of Bill Number of Diners 1 $ 7.00 $ 48.97 5 16 $ 3.30 $ 23.59 2 2 4.50 28.23 4 17 3.50 22.30 2 3 1.00 10.65 1 18 3.25 32.00 2 4 2.40 19.82 3 19 5.40 50.02 4 5 5.00 28.62 3 20 2.25 17.60 3 6 4.25 24.83 2 21 5.50 44.47 4 7 0.50 6.24 1 22 3.00 20.27 2…arrow_forward
- The Conch Café, located in Gulf Shores, Alabama, features casual lunches with a great view of the Gulf of Mexico. To accommodate the increase in business during the summer vacation season, Fuzzy Conch, the owner, hires a large number of servers as seasonal help. When he interviews a prospective server, he would like to provide data on the amount a server can earn in tips. He believes that the amount of the bill and the number of diners are both related to the amount of the tip. He gathered the following sample information. Customer Amount of Tip Amount of Bill Number of Diners Customer Amount of Tip Amount of Bill Number of Diners 1 $ 6.05 $ 73.22 1 16 $ 3.30 $ 23.59 2 2 4.50 28.23 4 17 3.50 22.30 2 3 1.00 10.65 1 18 3.25 32.00 2 4 2.40 19.82 3 19 5.40 50.02 4 5 5.00 28.62 3 20 2.25 17.60 3 6 4.25 24.83 2 21 1.40 41.80 5 7 .50 6.25 1 22 3.00 20.27 2…arrow_forwardChi-square tost of indopondance Eapatel Westminster Financial has released a summary of investment package information from the past fiscal year. During this time, Westminster provided a choice among twelve pre-designed investment packages. Westminster classified the packages into three categories according to riskiness. We're interested in the possible relationship between the age of an imvestor and the riskiness of the investment package she chose. So, there are two variables under consideration: age of Westminster investor ("under 35", "35-49", or "50+") and riskiness of investment choice ("risky", "mnderate/mixed", or "conservative"). The contingency table below gives a summary of the information released by Westminster regarding age and riskiness of investment package for a random sample of 150 investors. Each cell of the table contains three numbers: the first number is the observed cell frequency fo): the second number is the expected cell frequency e) under the assumption that…arrow_forwardI need the right answers for 2 & 3.arrow_forward
- Background: Morris Saldov conducted a study in Eastern and Central Newfoundland in 1988 to examine public attitudes towards social spending. In particular, the study tried to determine if knowing someone on public assistance (yes, no) affected one's views on social spending (too little, about right, too much). The data from the study is summarized in the table below. Yes No Total Too little 39 6 45 About right 16 13 29 Too much 8 17 Total 63 28 91 Source: Morris Saldov, Public Attitudes to Social Spending in Newfoundland," Canadian Review of Social Policy, 26, November 1990, pages 10-14. Directions: Conduct a chi-square test for independence to determine if the association between knowing someone on public assistance and views on social spending is statistically significant. 1. Choose the correct null and alternative hypotheses. Ho: There is an association between knowing someone on public assistance and views on social spending. H. There is no association between knowing someone on…arrow_forwardThe National Highway Association is studying the relationship between the number of bidders on a highway project and the winning (lowest) bid for the project. Of particular interest is whether the number of bidders increases or decreases the amount of the winning bid. Bidders Price 9.0 5.1 9.0 8.0 3.0 9.7 10.0 7.8 5.0 7.7 10.0 5.5 7.0 8.3 11.0 5.5 6.0 10.3 6.0 8.0 4.0 8.8 7.0 9.4 7.0 8.6 7.0 8.1 6.0 7.8 Given: Correlation of Coefficient: 0.7064 (This is correct) Coefficient of determination: 49.90% (This is correct) ŷ = 11.2360 + (-0.4667)x (This is correct) Create a scatter plot of the data Complete a regression analysis of the relationship. Slope = ______ Estimate the winning bid if there were seven bidders. Winning bid cost ______ millions. Compute the 95% prediction interval for a winning bid if there are seven bidders. [ _____________, ______________]arrow_forwardWhen 20 employees were first hired in 2011 for a creative engineering firm, Company A, the starting annual salary was $35,000. A competing creative engineering firm, Company B, had the same starting salary for 20 employees hired the same year. In 2016, data was collected on the annual salaries of the same employees at each of the two companyies. This data is displayed in the box plot shown. Part A: what are the pros and cons of working at each company? Explain using what you found in Part Aarrow_forward
- Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL