Denomination Effect. In Exercises 13–16, use the data in the following table. In an experiment to study the effects of using four quarters or a $1 bill, college students were given either four...

Denomination Effect. In Exercises 13–16, use the data in the following table. In an experiment to study the effects of using four quarters or a $1 bill, college students were given either four quarters or a $1 bill and they could either keep the money or spend it on gum. The results are summarized in the table ( based on data from “The Denomination Effect,” by Priya Raghubir and Joydeep Srivastava, Journal of Consumer Research, Vol. 36)

Denomination Effect

a.Find the probability of randomly selecting a student who kept the money, given that the student was given four quarters.

b. Find the probability of randomly selecting a student who kept the money, given that the student was given a $1 bill.

c. What do the preceding results suggest?

Extracted text: Purchased Gum Kept the Money 16 27 Students Given Four Quarters Students Given a $1 bill 34 12