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
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Fundamentals of Statistics (5th Edition)
- Purchasing magazine reported the results of a survey in which buyers were asked a series of questions with regard to internet usage. One question asked was how they would use the internet if security and other issues could be resolved. Seventy-eight percent said they would use it for pricing information, 75% said they would use it to send purchase orders, and 70% said they would use it for purchase order acknowledgments. Assume that these percentages hold true for all buyers. A researcher randomly samples 20 buyers and asked them how they would use the internet if security and other issues could be resolved. What is the probability that all of the buyers would use the internet to send purchase orders?arrow_forwardA 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_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 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_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 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_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_forwardANOVA. Dr. Milgramm is conducting a patient satisfaction survey, rating how well her patients like her on a scale of 1-10. Her patients tend to fall into three categories: “Like a lot”, “like somewhat”, and “dislike a lot”. She believes that she might get different satisfaction scores from people in each group, but (because she's not great at numbers) she wants you to do an ANOVA to be sure. She has collected data from 12 patients (three equal groups) with the following results. Group 1) “Like a lot” Mean: 8 SS: 2 N: df: Group 2) “Like somewhat” Mean: 5 SS: 6 N: df: Group 3) “Dislike a lot” Mean: 2 SS: 4 N: df: Grand Mean: df Within-Group:__________ df Between-Groups:___________ Estimated Variance (S21) for Group 1: _______ Estimated Variance (S22) for Group 2: ___________ Estimated…arrow_forwardHow do I do this in excel? Rocky Mountain National Park is a popular park for outdoor recreation activities in Colorado. According to U.S. National Park Service statistics, 46.7% of visitors to Rocky Mountain National Park in 2018 entered through the Beaver Meadows park entrance, 24.3% of visitors entered through the Fall River park entrance, 6.3% of visitors entered through the Grand Lake park entrance, and 22.7% of visitors had no recorded point of entry to the park.†Source: U.S. National Park Service website Consider a random sample of 175 Rocky Mountain National Park visitors. Use the normal approximation of the binomial distribution to answer the following questions. (Round your answers to four decimal places.) (a) What is the probability that at least 85 visitors had a recorded entry through the Beaver Meadows park entrance? (b) What is the probability that at least 80 but less than 90 visitors had a recorded entry through the Beaver Meadows park entrance? (c)…arrow_forward
- Chi-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_forwardANOVA. Dr. Milgram is conducting a patient satisfaction survey, rating how well her patients like her on a scale of 1-10. Her patients tend to fall into three categories: “Like a lot”, “like somewhat”, and “dislike a lot”. She believes that she might get different satisfaction scores from people in each group, but (because she's not great at numbers) she wants you to do an ANOVA to be sure. She has collected data from 12 patients (three equal groups) with the following results. Group 1) “Like a lot” Mean: 8 SS: 2 N: df: Group 2) “Like somewhat” Mean: 5 SS: 6 N: df: Group 3) “Dislike a lot” Mean: 2 SS: 4 N: df: Grand Mean: df Within-Group:__________ df Between-Groups:___________ Estimated Variance (S21) for Group 1: _______ Estimated Variance (S22) for Group 2: ___________…arrow_forwardThe survey included questions on ticketing, boarding, in-flight service, baggage handling, pilot communication,and so forth. Twenty-five questions offered a range of possible answers: excellent, good, fair, or poor. A response of excellent was given a score of 4, good a 3, fair a 2, and poor a 1. These responses were then totaled, so the total score was an indication of the satisfaction with the flight. The greater the score, the higher the level of satisfaction with the service. The highest possible score was 100. Brunner randomly selected and surveyed passengers from the four airlines. Below is the sample information. Is there a difference in the mean satisfaction level among the four airlines? Use the .01 significance level.arrow_forward
- Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL