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16. Take the offer, part II. In Exercise 19.16 you
Chapter 20, Problem 16(choose chapter or problem)
16. Take the offer, part II. In Exercise 19.16 you learnedthat First USA, a major credit card company, is planning anew offer for their current cardholders. First USA will givedouble airline miles on purchases for the next 6 months ifthe cardholder goes online and registers for this offer. Totest the effectiveness of this campaign, the companyrecently sent out offers to a random sample of 50,000cardholders. Of those, 1184 registered. A staff membersuspects that the success rate for the full campaign will becomparable to the standard 2% rate that they are used toseeing in similar campaigns. What do you predict?a) What are the hypotheses?b) Are the assumptions and conditions for inferencemet?c) Do you think the rate would change if they use thisfundraising campaign? Explain.
Questions & Answers
QUESTION:
16. Take the offer, part II. In Exercise 19.16 you learnedthat First USA, a major credit card company, is planning anew offer for their current cardholders. First USA will givedouble airline miles on purchases for the next 6 months ifthe cardholder goes online and registers for this offer. Totest the effectiveness of this campaign, the companyrecently sent out offers to a random sample of 50,000cardholders. Of those, 1184 registered. A staff membersuspects that the success rate for the full campaign will becomparable to the standard 2% rate that they are used toseeing in similar campaigns. What do you predict?a) What are the hypotheses?b) Are the assumptions and conditions for inferencemet?c) Do you think the rate would change if they use thisfundraising campaign? Explain.
ANSWER:a) Our null hypothesis is that the success rate for the full campaign will be 2%, and our alternative hypothesis is that the success rate for the full campaign will be different than 2%.
b) The assumptions and conditions for in