Explore BrainMass

Explore BrainMass

    Hypothesis Test - 1

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Blockbuster began a policy of waiving late fees (sort of!) on DVD rentals a while back. A random sample of ten customers is shown in the file Blockdvd.xls with the number each customer rented when there was a late fee and when there was no late fee. Test at ? = .10 whether the data suggest that the monthly mean number of rentals has increased with the no late fee policy. Do both by hand and with Excel.

    © BrainMass Inc. brainmass.com June 4, 2020, 3:11 am ad1c9bdddf
    https://brainmass.com/statistics/hypothesis-testing/hypothesis-test-503332

    Attachments

    Solution Preview

    Solution:
    Null Hypothesis: The monthly mean number of rentals has not increased with the no-late fee policy.
    H_0: μ_1≤μ_2
    Alternate Hypothesis: The monthly mean number of rentals has increased with the no late fee policy.
    H_1: μ_1>μ_2

    Since the alternate hypothesis is H_1:μ_1<μ_2 the given test is an upper-tailed t-test.
    Significance Level, α=0.10
    Using sample data, we ...

    Solution Summary

    The expert examines hypothesis testing for policy of waiving late fees.

    $2.19

    ADVERTISEMENT