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A large retail lawn care dealer currently provides a 2-year warranty on all lawn mowers sold at its stores. A new employee suggested that the dealer could save money by just not offering the warranty. To evaluate this suggestion, the dealer randomly decides whether or not to offer the warranty to the next 50 customers who enter the store and express an interest in purchasing a lawnmower. Out of the 25 customers offered the warranty, 10 purchased a mower as compared to 4 of 25 not offered the warranty. a. Place a 95% confidence interval on #₁ - TT 2, the difference in the proportions of customers purchasing lawnmowers with and without the warranty. b. Test the research hypothesis that offering the warranty will increase the propor- tion of customers who will purchase a mower. Use a = .05. c. Are the conditions for using a large-sample test to answer the question in part (b)

A large retail lawn care dealer currently provides a 2-year warranty on all lawn mowers sold at its stores. A new employee suggested that the dealer could save money by just not offering the warranty. To evaluate this suggestion, the dealer randomly decides whether or not to offer the warranty to the next 50 customers who enter the store and express an interest in purchasing a lawnmower. Out of the 25 customers offered the warranty, 10 purchased a mower as compared to 4 of 25 not offered the warranty. a. Place a 95% confidence interval on #₁ - TT 2, the difference in the proportions of customers purchasing lawnmowers with and without the warranty. b. Test the research hypothesis that offering the warranty will increase the propor- tion of customers who will purchase a mower. Use a = .05. c. Are the conditions for using a large-sample test to answer the question in part (b)

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 11CYU
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A large retail lawn care dealer currently provides a 2-year warranty on all lawn mowers sold at its stores. A new employee suggested that the dealer could save money by just not offering the warranty. To evaluate this suggestion, the dealer randomly decides whether or not to offer the warranty to the next 50 customers who enter the store and express an interest in purchasing a lawnmower. Out of the 25 customers offered the warranty, 10 purchased a mower as compared to 4 of 25 not offered the warranty. a. Place a 95% confidence interval on 7₁ - 72, the difference in the proportions of customers purchasing lawnmowers with and without the warranty. b. Test the research hypothesis that offering the warranty will increase the propor- tion of customers who will purchase a mower. Use a = .05. c. Are the conditions for using a large-sample test to answer the question in part (b) satisfied? If not, apply an exact procedure,
Transcribed Image Text:A large retail lawn care dealer currently provides a 2-year warranty on all lawn mowers sold at its stores. A new employee suggested that the dealer could save money by just not offering the warranty. To evaluate this suggestion, the dealer randomly decides whether or not to offer the warranty to the next 50 customers who enter the store and express an interest in purchasing a lawnmower. Out of the 25 customers offered the warranty, 10 purchased a mower as compared to 4 of 25 not offered the warranty. a. Place a 95% confidence interval on 7₁ - 72, the difference in the proportions of customers purchasing lawnmowers with and without the warranty. b. Test the research hypothesis that offering the warranty will increase the propor- tion of customers who will purchase a mower. Use a = .05. c. Are the conditions for using a large-sample test to answer the question in part (b) satisfied? If not, apply an exact procedure,
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