Many stores sell extended warranties for products they sell. These are very lucrative for store owners. To

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Many stores sell extended warranties for products they sell. These are very lucrative for store owners.

To learn more about who buys these warranties, a random sample was drawn of a store’s customers who recently purchased a product for which an extended warranty was available. Among other variables, each respondent reported whether he or she paid the regular price or a sale price and whether he or she purchased an extended warranty.

Regular Price Sale Price Sample size 229 178 Number who bought extended warranty 47 25 Can we conclude at the 10% significance level that those who paid the regular price are more likely to buy an extended warranty?

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Statistics For Management And Economics

ISBN: 9781133420774

9th Edition

Authors: Gerald Keller, Kenneth C Louden

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