QUESTION 1 [15 MARKS] The ICS Marketing Department wants to increase subscriptions to its Trident product bundle which includes telephone, cable television, and Internet services. The Marketing Department gathered information about current customers, and whether or not they currently subscribe to the Trident bundle. Current customers might subscribe to only one or two of the services offered, and ICS would like to upgrade such customers to the Trident bundle. Marketing staff designed a 5-question survey for customers who currently do not subscribe to the Trident bundle. One of the questions posed in the survey was: Would you consider subscribing to the Trident bundle if a discount was offered? 1 Source: Adapted from Berenson, Mark, et al. Basic Business Statistics: Concepts and Applications, 14th Edition. Pearson, 2019. Reviewing the results of its research, Marketing staff concluded that a segment of customer households might be interested in a discounted trial subscription to the Trident product bundle. Staff decided to test various discounts before determining the type of discount to offer during the trial period. They decided to conduct an experiment using three types of discounts, plus a plan that offered no discount during the trial period. 1. No Discount: Subscribers would pay the full price ($99.99 per month) for the Trident bundle during the trial period. 2. Moderate Discount: Subscribers would pay $79.99 per month for the Trident bundle during the trial period. 3. Substantial Discount: Subscribers would pay $59.99 per month for the Trident bundle during the trial period. 4. Restaurant Card: Subscribers would be given a special card providing a discount of 15% at selected restaurants in the region during the trial period. Each participant in the experiment was randomly assigned to a discount plan. A random sample of 100 subscribers to each plan during the trial period was tracked to determine how many would continue to subscribe to the Trident bundle after the trial period. An Excel file has been provided to you in Blackboard, containing the results of this experiment.

(a) Analyze the results of the experiment. Is there evidence of a difference in the proportion of subscribers who will continue their subscriptions among the four discount plans? Explain your methodology and conclusion (ensure you follow and show all relevant steps for conducting a Chi-Square hypothesis test). [6 marks] (b) If there is evidence of a difference in the proportions in part (a), determine which pairs of discount plans have a significant difference between them. Explain your methodology and conclusion (ensure you follow and show all relevant steps for conducting the Marascuilo procedure). [6 marks] (c) Based on the survey results, make a recommendation for which discount plan, if any, ICS should use. Briefly explain the reasoning behind your conclusion. [3 marks]