Question

Is someone who switches brands because of a financial inducement less likely to remain loyal than someone who switches without inducement? Let p1 and p2 denote the true proportion of switchers to a certain brand with and without inducement, respectively, who subsequently make a repeat purchase.

a. Test Ho: p1 – p2 = 0 versus Ha: p1 – p2 < 0 using a significance level of 0.01 and the following results:
m = 300 number of success = 60
n = 600 number of success = 200
b. What is the P-value?
c. Give a 99% CI for p1 – p2

Answer 1