Explore BrainMass

Explore BrainMass

    Test of hypothesis for dependent samples

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

    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

    © BrainMass Inc. brainmass.com June 3, 2020, 10:15 pm ad1c9bdddf
    https://brainmass.com/statistics/hypothesis-testing/test-of-hypothesis-for-dependent-samples-222337

    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.

    $2.19

    ADVERTISEMENT