Question 7.127

7.127 Sign test for the endowment effects.

Refer to Exercise 7.26 (page 376) and Exercise 7.124. We can also compare the endowment effects of each chocolate bar. Is there evidence that the median difference in endowment effects (Woolloomooloo minus Oaxaca) is greater than 0? Perform a sign test using the 0.05 significance level.

endow2

7.127

. The probability is 0.095. There is no strong evidence that the two endowment effects are different.