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 you
Answer by stanbon(75887)   (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
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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
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(b) Is the decision close?
No since alpha = 10% and p= 0.9%
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(c) Are you convinced?
I'll leave that to you.
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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
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Cheers,
Stan H.
t(2) = 2/
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