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Test of hypothesis for dependent samples

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Blockbuster is testing a new policy of waiving all late fees on DVD rentals using a sample of 10 randomly chosen customers.
(a) At alpha= .10, does the data show that the mean number of monthly rentals has increased?
(b) Is the decision close ?
(c) Are you convinced?

DVDRental

Customer No Late fee Late fee
1 14 10
2 12 7
3 14 10
4 13 13
5 10 9
6 13 14
7 12 12
8 10 7
9 13 13
10 13 9

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Solution Preview

Blockbuster is testing a new policy of waiving all late fees on DVD rentals using a sample of 10 randomly chosen customers.
(a) At alpha (a) = .10, does the data show that the mean number of monthly rentals has increased?
(b) Is the decision close ?
(c) Are you convinced?

Customer No Late fee Late fee
1 14 10
2 12 7
3 14 10
4 13 13
5 10 9
6 13 14
7 12 12
8 10 7
9 13 13
10 13 9

(a) At alpha (a) = .10, does the data show that the mean number of monthly rentals has increased?

First we calculate the mean and standard deviation of difference
Customer No Late fee Late fee "Difference
"
1 14 10 4
2 12 7 5
3 14 10 4
4 13 13 0
5 10 9 1
6 13 14 -1
7 12 12 0
8 10 7 3
9 13 13 0
10 13 9 4

Calculation of Mean ...

Solution Summary

Uses t test for dependent samples to test the hypothesis that the mean number of monthly rentals has increased.

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