Question
A direct-mail retailer experimented with three different ways of incorporating orders forms into its catalog. In type 1, the form was at the end of
A direct-mail retailer experimented with three different ways of incorporating orders forms into its catalog. In type 1, the form was at the end of the catalog; type 2 was in the middle; and in type 3, there were forms both in the middle and at the end. Each form was sent to a sample of 1,000 potential customers, none of whom had previously bought from the retailer. The significance level is 0.05 and make sure specify the null and alternative hypotheses for all the tests you perform. The observed contingency table is given below:
Received | Type 1 | Type 2 | Type 3 |
No | 944 | 961 | 915 |
Yes | 56 | 39 | 85 |
a) Is there significant evidence that the proportion of order forms received differs for the three types of forms?
b) Compare the actual cell counts with the expected cell counts to explain where the dependency from part a) comes from.
c) Calculate a 95% confidence interval for the probability of receiving the form back, for each of the three methods.
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