There are two major cell phone providers in the Colorado Springs, Colorado area, one called HTC and the other, Mountain Communications. We want to investigate the "churn rate" for each provider. Churn is the amount of customers or subscribers who cut ties with a company during a given time period. At the beginning of the month, HTC had 10,000 customers; at the end of the month, HTC had 9,810 customers for a loss of 190. For the same month, Mountain Communications started with 12,500 customers and ended the month with 12,285 customers, for a loss of 215. At the 0.01 significance level, is there a difference in the churn rate for the two providers? a. State the null and alternate hypotheses. Ho: TT HTC H: T HTC TT Mountain IT Mountain

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c. Evaluate the test statistic. (Round your answer to 2 decimal places.)
Test statistic
d. What is the decision regarding the null hypothesis?
Ho is
not rejected
There is no
difference in the churn rates.
Transcribed Image Text:c. Evaluate the test statistic. (Round your answer to 2 decimal places.) Test statistic d. What is the decision regarding the null hypothesis? Ho is not rejected There is no difference in the churn rates.
There are two major cell phone providers in the Colorado Springs, Colorado area, one called HTC and the other, Mountain
Communications. We want to investigate the "churn rate" for each provider. Churn is the amount of customers or subscribers who cut
ties with a company during a given time period. At the beginning of the month, HTC had 10,000 customers; at the end of the month,
HTC had 9,810 customers for a loss of 190. For the same month, Mountain Communications started with 12,500 customers and ended
the month with 12,285 customers, for a loss of 215. At the 0.01 significance level, is there a difference in the churn rate for the two
providers?
a. State the null and alternate hypotheses.
Ho: TT HTC
TT Mountain
H: T HTC
TT
Mountain
b. Make the decision rule. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Reject Ho if z is
not between
and
Transcribed Image Text:There are two major cell phone providers in the Colorado Springs, Colorado area, one called HTC and the other, Mountain Communications. We want to investigate the "churn rate" for each provider. Churn is the amount of customers or subscribers who cut ties with a company during a given time period. At the beginning of the month, HTC had 10,000 customers; at the end of the month, HTC had 9,810 customers for a loss of 190. For the same month, Mountain Communications started with 12,500 customers and ended the month with 12,285 customers, for a loss of 215. At the 0.01 significance level, is there a difference in the churn rate for the two providers? a. State the null and alternate hypotheses. Ho: TT HTC TT Mountain H: T HTC TT Mountain b. Make the decision rule. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Reject Ho if z is not between and
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