7-67 Sadness and spending- The "misery is not miserly" phenomenon refers to a person's spending judgment going haywire when the person is sad.

In a study, 3 1 young adults were given $1 0 and randomly assigned to either a

sad or a neutral group. The participants in the sad group watched a video

about the death of a boy‘s mentor (from The Champ), and those in the neutral

group watched a video on the Great Barrier Reef. After the video, each

participant was offered the chance to trade $0.5 0 increments of the $1 0 for an insulated water bottle.2 Here are the data: m saunas: Group Purchase price ($)

Neutral 0.00 2.00 0.00 1.00 0.50 0.00 0.50

2.00 1.00 0.00 0.00 0.00 0.00 1.00 Sad 3.00 4.00 0.50 1.00 2.50 2.00 1.50 0.00 1.00

1.50 1.50 2.50 4.00 3.00 3.50 1.00 3.50 (a) Examine each group's prices graphically. Is use of the t procedures

appropriate for these data? Carefully explain your answer. (b) Make a table with the sample size, mean, and stande deviation for each

of the two groups. (c) State appropriate null and alternative hypotheses for comparing these

two groups. (d)Perform the significance test at the a=0.05 level, making sure to report the

test statistic, degrees of freedom, and P-value. What is your conclusion? (e) Construct a 9 5 % confidence interval for the mean difference in purchase

price between the two groups.