Results of a small experiment show that people are likely to offer a different amount for used exercise equipment when bargaining with a friend than when bargaining with a
Stranger. The p-value from testing the difference in mean offers was equal to 0.00162.
At an α = 0.05, the correct conclusion is to
A) reject the null hypothesis.
B) fail to reject the null hypothesis.
C) conclude that there is no difference between bargaining with a stranger versus a friend.
D) Both A and C.
E) Both B and C.

Question

Quizplus · Accepted Answer

The p-value (0.00162) is less than the significance level (α=0.05), which means that we have strong evidence to reject the null hypothesis. Therefore, we can conclude that there is a significant difference in the mean offers between bargaining with a friend versus a stranger.

Results of a Small Experiment Show That People Are Likely