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Hypothesis Test - 1

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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.

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

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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 ...

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