Defection from a service based on payment plan. Refer to the Journal of Marketing Research (October 2019) study of defections from a service plan (e.g., a fitness center), Exercise 8.20 (p. 452). The researchers investigated whether you are more likely to defect from the service if you make a one-time lump sum payment or if you choose a multiple payment plan. Recall that MBA students were told to assume they had enrolled in an 18-month cellular service plan that offered a $450 handset; half were informed that they made a lump sum payment of $450 and half were informed that they are making multiple payments of $25 per month. Each MBA student reported their intentions to defect from the service on a 7-point Likert scale ranging from 1 (“not at all”) to 7 (“very much”). The study included over 200 MBA students. Assume that you have access to data for only 20 MBA students, 10 from each group. These data (intention to defect scores) are displayed in the table. [Note: The data are simulated, based on summary information provided by the researchers.] Lump Sum Payment: 7 5 7 3 5 2 3 3 4 2 Multiple Payments: 5 4 6 2 1 3 3 2 4 6

a. Use the method of this section to answer the research question: “Are you more likely to defect from the service if you make a one-time lump sum payment or if you choose a multiple payment plan?”

b. Since they are measured using a 7-point scale, the defect scores are unlikely to be normally distributed. How does this impact the validity of your inference, part a?