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
Null Hypothesis: The monthly mean number of rentals has not increased with the no-late fee policy.
Alternate Hypothesis: The monthly mean number of rentals has increased with the no late fee policy.
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 ...
The expert examines hypothesis testing for policy of waiving late fees.