# SOLUTION: Hi can you please help me solve for this problem from book: Doane&#8722;Seward: Applied Statistics in Business and Economics, chapter 10: Blockbuster is testing a new policy of

Algebra ->  Algebra  -> Probability-and-statistics -> SOLUTION: Hi can you please help me solve for this problem from book: Doane&#8722;Seward: Applied Statistics in Business and Economics, chapter 10: Blockbuster is testing a new policy of       Log On

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 Question 182048: Hi can you please help me solve for this problem from book: Doane−Seward: Applied Statistics in Business and Economics, chapter 10: Blockbuster is testing a new policy of waiving all late fees on DVD rentals using a sample of 10 randomly chosen customers. (a) At α = .10, does the data show that the mean number of monthly rentals has increased? (b) Is the decision close? (c) Are you convinced? Customer: 1,2,3,4,5,6,7,8,9,10 No Late Fee: 14,12,14,13,10,13,12,10,13,13 Late Fee: 10,7,10,13,9,14,12,7,13,9 Thank youAnswer by stanbon(57203)   (Show Source): You can put this solution on YOUR website!book: Doane−Seward: Applied Statistics in Business and Economics, chapter 10: Blockbuster is testing a new policy of waiving all late fees on DVD rentals using a sample of 10 randomly chosen customers. (a) At α = .10, does the data show that the mean number of monthly rentals has increased? Ho: u(d) = 0 Ha: u(d) > 0 --------------- The differences: 4,5,4,0,1,-1,0.3.0.4 mean of the sample: u(d) bar = 20/10 = 2 stand Dev of the sample; 2.211 Test statistic: t(2) = 2/[2.211/sqrt(10)] = 2.86 p-value: P(t > 2.86 with df = 9) = 0.009 -------------------- (b) Is the decision close? No since alpha = 10% and p= 0.9% --------------------------- (c) Are you convinced? I'll leave that to you. --- Customer: 1,2,3,4,5,6,7,8,9,10 No Late Fee: 14,12,14,13,10,13,12,10,13,13 Late Fee:... 10, 7,10,13, 9,14,12,7,13,9 --- ---------------- Cheers, Stan H. t(2) = 2/