Analysis of Mental Accounting Differences between Male and Female Participants

This dissertation analyzes the differences in mental accounting between male and female participants using independent sample t-test. The study examines whether there is a significant difference in mental accounting between the two groups and concludes that mental accounting is a gender-independent process.

Running head: DISSERTATION
Dissertation
Name of the student
Name of the University
Author note

1DISSERTATION
ANALYSIS
To analyse the collected data, independent sample t-test has been used. The purpose of
this data analysis is to examine whether there is a statistical significant difference in mental
accounting between two groups namely Male and Female.
For independent sample t-test the null hypothesis H0 is the scores of Male and Female in
mental accounting problems will not vary. The alternative hypothesis H1 is the scores of Male
and Female in mental accounting problems will vary.
In order to prove the null hypothesis H0 the scores of male and female participants have
to be significantly different. The significant difference has been examined by Levene’s Test to
test the homogeneity of variance. The two tailed t-test value has been considered to find the
significance value or p-value. The aim of this t-test is to examine if P>0.05 or p<0.05. If p<0.05,
it can be said that the differences in two groups are statistically significant. However, for P<0.05,
the null hypothesis should be rejected and alternative hypothesis should be accepted. For p>0.05,
the alternative hypothesis should be rejected and null hypothesis should be accepted.
Group Statistics
Questions Mental Accounting Problems Gender N Mean Std. Deviation Std. Error Mean
Q2 Movie ticket problem,
Scenario A
Female 11 1.55 .522 .157
Male 10 1.80 .422 .133
Q5 Movie ticket problem,
Scenario B
Female 11 1.55 .522 .157
Male 11 2.00 .000 .000
Q3 Sneaker and umbrella problem,
Scenario A
Female 11 1.45 .522 .157
Male 11 1.36 .505 .152
Q6 Sneaker and umbrella problem,
Scenario B
Female 11 1.36 .505 .152
Male 11 1.09 .302 .091
Q4 Basketball game problem,
Scenario A
Female 11 1.36 .505 .152
Male 11 1.55 .522 .157
Q7 Basketball game problem, Female 11 1.64 .505 .152

2DISSERTATION
Scenario B Male 11 1.73 .467 .141
Table 1: Group Statistics
From the mean value distribution of 6 questions, the mean values are presented in the
following bar graph to show the differences of mean values within male and female participants.
Q2 Q5 Q3 Q6 Q4 Q7
0
0.5
1
1.5
2
2.5
Female
Male
Figure 1: Group Statistics Graph
From the above statistical group analysis with mean value and standard error, it has been
found that the all male participants answered yes to Movie ticket problem Scenario B. However,
as per the graphical representation of mean values, it has been found that in Q3 Sneaker and
umbrella problem Scenario A and Sneaker and umbrella problem Scenario B most of the male
participants have scored low mean value, which means more tendency to give the answer “No”.
On the other hand, in Movie ticket problem Scenario A, Movie ticket problem Scenario B,
Basketball game problem Scenario A, Basketball game problem Scenario and Movie ticket
problem Scenario B, Males are more likely to give the answer “Yes”.

3DISSERTATION
Independent Samples Test
Levene's Test
for Equality of
Variances t-test for Equality of Means
F Sig. t df
Sig.
(2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower Upper
Q2 Movie ticket problem,
Scenario A
Equal variances
assumed
5.143 .035 -1.221 19 .237 -.255 .209 -.691 .182
Equal variances
not assumed
-1.234 18.763 .233 -.255 .206 -.687 .178
Q5 Movie ticket problem,
Scenario B
Equal variances
assumed
1200.00 .000 -2.887 20 .009 -.455 .157 -.783 -.126
Equal variances
not assumed
-2.887 10.000 .016 -.455 .157 -.805 -.104
Q3 Sneaker and umbrella
problem,
Equal variances
assumed
.567 .460 .415 20 .682 .091 .219 -.366 .548
Scenario A Equal variances
not assumed
.415 19.976 .682 .091 .219 -.366 .548
Q6 Sneaker and umbrella
problem,
Scenario B
Equal variances
assumed
12.203 .002 1.539 20 .139 .273 .177 -.097 .642
Equal variances
not assumed
1.539 16.335 .143 .273 .177 -.102 .648
Q4 Basketball game problem,
Scenario A
Equal variances
assumed
.567 .460 -.830 20 .416 -.182 .219 -.639 .275
Equal variances
not assumed
-.830 19.976 .416 -.182 .219 -.639 .275
Q7 Basketball game problem,
Scenario B
Equal variances
assumed
.751 .396 -.439 20 .666 -.091 .207 -.523 .342

4DISSERTATION
Equal variances
not assumed
-.439 19.882 .666 -.091 .207 -.524 .342
Table 2: Independent Sample T-test
From the independent sample T-test, it has been found that all the 2-tailed significant
values are higher than the probability testing value except the Q5 Movie ticket problem Scenario
B. In Movie ticket problem Scenario B, the 2-tailed significant value is 0.009, which is lower
than the probability test value 0.05. Therefore, it can be said, that except the Q5 Movie ticket
problem Scenario B, there is no significant difference found within the two groups namely, male
and female. Therefore, the null hypothesis has been accepted and the alternative hypothesis has
been rejected. At the same time as per the group statistics, it has been found that the mean value
of Q5 Movie ticket problem Scenario B is 2, which means all the male participants answered that
if they found that they have lost a $10 bill, they would not buy a ticket of $10.
DISCUSSION
Summary of the result:
From the independent sample T-test between Male and Female participants, it has been
found that except the Movie ticket problem Scenario B there is no significant difference found
within the two groups. However, as per mean value analysis except Sneaker and umbrella
problem Scenario A and Sneaker and umbrella problem Scenario B most of the male participants
have answered “Yes” to rest of the questions, which means female participants had more
tendency to give the answer “No” in most of the questions. On the other hand, the significant
value of Movie ticket problem Scenario A, Movie ticket problem Scenario B, Basketball game
problem Scenario A, Basketball game problem Scenario and Movie ticket problem Scenario B is

5DISSERTATION
not proper to prove the hypothesis write. Therefore, the higher mean values are not significantly
identifiable.
Meaning of the result
From the results, it can be synthesised that the scores of males and females in terms of
mental accounting problems does not vary significantly. Consequently, the null hypothesis has
been accepted and the alternative hypothesis has been rejected. Therefore, unlike general
decision-making problems (Nambiar and Gopal , 2018), mental accounting problems are not
usually assessed differently by men and women. With regards to this explanation, it can also be
said that, the study has proven the assumption wrong, that states mental budgeting is a gender
specific process. It has been proved that mental budgeting is a gender independent process.
Linking to other findings
From the data analysis and synthesis, it can be said that the results support the concept
presented by Liu, Liu and Mu (2017), which signifies that effects of mental accounting and its
applicability on the broad population, while neglecting the dependency on gender or age. In a
study on business behaviour and mental accounting, Nambiar and Gopal (2018), also found that
the variables that affects mental accounting are independent from the gender and the age of the
population. However, it has been acknowledged, that mental accounting is more dependent on
experiences, social perceptions and other situational attributes. As defined by Helion, C. and
Gilovich (2014), mental accounting is not highly related to decision making process in human
psychology.
Future scope:

6DISSERTATION
From this research, it has been found that the mental accounting is a gender independent
psychological process. However, the sample size of the research is very limited. With the
increment of sample size, the viability of any statistical data increases. Therefore, in future this
study can be conducted on a larger group where the results could reflect more viable and reliable
evidence. Apart from that, in future research, the variables that influences the mental accounting
could be identified with the coefficient of their significance.
General conclusion
It can be concluded, that there is very limited number of research available that focuses
on gender specific mental accounting. Hence, this research is very valuable. From this study, it
has been found that unlike general decision-making problems, mental accounting problems are
not usually assessed differently within men and women. Through the data collection and
analysis, the research has proved that mental budgeting is a gender independent process. Both
capability and choice do not depend on the gender of any individual. Moreover, identification of
appropriate influencers of mental accounting is essential.

7DISSERTATION
Reference
Liu, Z., Liu, T. & Mu, S. (2017). Mental Accounting in Decision-Making for Self Versus Others.
Journal of Neuroscience, Psychology, and Economics, 10(2-3), 81-94.
http://dx.doi.org/10.1037/npe0000074
Nambiar, B., & Gopal, R. K. (2018). MENTAL ACCOUNTING BIAS–A MULTI-
DIMENSIONAL STUDY AND APPLICATION TO INVESTMENT
ADVISORY. Scholars Association of Kerala, 8(4-A), 200.
Helion, C. and Gilovich, T., 2014. Gift cards and mental accounting: Green‐lighting hedonic
spending. Journal of Behavioral Decision Making, 27(4), pp.386-393.