A manager at ACME Equipment Sale and Rental wondered how offering a free two-year service warranty on its tractors might influence sales. For the next 500 customers expressing interest in purchasing a tractor, 250 were randomly offered the warranty and the rest were not. Ninety-three of those offered the warranty, and fifty-four of those not offered the warranty eventually purchased a tractor. b. Test the hypothesis that offering the warranty increases the proportion of customers who eventually purchase a tractor. Be sure to check all necessary assumptions, state the null and alternative hypotheses, obtain the p-value, and state your conclusion. Should the manager offer the warranty based on this test?
A manager at ACME Equipment Sale and Rental wondered how offering a free two-year service warranty on its tractors might influence sales.
For the next 500 customers expressing interest in purchasing a tractor, 250 were randomly offered the warranty and the rest were not.
Ninety-three of those offered the warranty, and fifty-four of those not offered the warranty eventually purchased a tractor.
b. Test the hypothesis that offering the warranty increases the proportion of customers who eventually purchase a tractor.
Be sure to check all necessary assumptions, state the null and alternative hypotheses, obtain the
p-value, and state your conclusion.
Should the manager offer the warranty based on this test?
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