An airline marketing manager sent out 10,000 mail pieces to a random sample of customers to test
Question:
An airline marketing manager sent out 10,000 mail pieces to a random sample of customers to test a new web-based loyalty program. The customers received either nothing (No Offer), a free companion airline ticket (Free Flight), or free flight insurance on their next flight (Free Insurance). The person in charge of selecting the 10,000 customers has assured the marketing manager that the sample is representative of the various marketing segments in the customer base. However, the manager is worried that the offer wasn’t sent out to enough customers in the Travel segment, which represents 25% of the entire customer base (variable Spending Segment). In addition, he’s worried that fewer than one-third of customers in that segment actually received no offer. Using the data found in the file ch12_MCSP_Loyalty_Program, write a short report to the manager testing the appropriate hypotheses and summarizing your findings. Include in your report a 95% confidence interval for the proportion of customers who responded to the offer by signing up for the loyalty program. (The variable Response indicates a 1 for responders and 0 for nonresponders.)
Step by Step Answer:
Business Statistics
ISBN: 9780133899122
3rd Canadian Edition
Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright