Imagine you are in your local department store to buy a sweater. Which of the following signs would make you think you’re getting a good deal: “Everyday Low Price \($15.00\)” or “Regularly \($20.00/Sale\) \($15.00”\)? Because the actual price in both signs is the same, you should be equally likely to pick either sign. One study investigated whether the presentation of a price influences customers’ perceptions of savings (Tom & Ruiz, 1997). They asked 49 college students to select one of the two signs. Twelve students selected the everyday low price sign, and 37 selected the sale price sign.

a. Create a frequency distribution table for these data.

b. The researchers “hypothesized that consumers would think that a sale price presentation would generate a greater monetary savings than an everyday low price presentation” (p. 403). Do the percentages in your frequency distribution table provide preliminary support for this hypothesis?