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Chapter 10: Q.4 (page 621)

Credit cards and incentives A bank wants to know which of two incentive plans will most increase the use of its credit cards. It offers each incentive to a group of current credit card customers, determined at random, and compares the amount charged during the following six months.

(a) Is this a problem with comparing means or comparing proportions? Explain.

(b) What type of study design is being used to produce data?

Short Answer

Expert verified

From the given information,

a) It is about comparing means.

b)Experimental type of study design is being used to produce data.

Step by step solution

01

Part (a) Step 1: Given Information

It is given in the question that, a bank needs to determine which of two incentive strategies will increase Visa usage the greatest. It gives every incentive to a randomly selected group of current Visa clients and considers the amount charged over the preceding six months.

02

Part (a) Step 2: Explanation

In this situation, two scores are involved, and scores are numerical numbers. Mean scores can be calculated because the data is numerical. As a result, the problem can be characterised as a comparison of means..

03

Part (b) Step 1: Given Information

It is given in the question that, a bank needs to determine which of two incentive strategies will increase Visa usage the greatest. It gives every incentive to a randomly selected group of current Visa clients and considers the amount charged over the preceding six months. What type of study design is being used to produce data?

04

Part (b) Step 2: Explanation

The volunteers in an experimental study are given treatment and their responses are tracked. In this experiment, subjects were utilized to track the response.

As a result, it's merely a test.

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Most popular questions from this chapter

The U.S. Department of Agriculture (USDA) conducted a survey to estimate the average price of wheat in July and in September of the same year. Independent random samples of wheat producers were selected for each of the two months. Here are summary statistics on the reported price of wheat from the selected producers, in dollars per bushel:

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a) Maybe; we have independent random samples, but we need to look at the data to check Normality.

(b) No; road rage scores in a range between 0 and 20 can鈥檛 be Normal.

(c) No; we don鈥檛 know the population standard deviations.

(d) Yes; the large sample sizes guarantee that the corresponding population distributions will be Normal.

(e) Yes; we have two independent random samples and large sample sizes.

Explain why the conditions for using two-sample z procedures to perform inference about p1-p2are not met in the settings

Don鈥檛 drink the water! The movie A Civil Action (Touchstone Pictures 1998) tells the story of a major legal battle that took place in the small town of Woburn, Massachusetts. A town well that supplied water to eastern Woburn residents was contaminated by industrial chemicals. During the period that residents drank water from this well, 16of the 414babies born had birth defects. On the west side of Woburn, 3of the 228babies born during the same time period had birth defects.

A sample survey interviews SRSs of 500female college students and 550male college students. Each student is asked whether he or she worked for pay last summer. In all, 410 of the women and 484 of the men say 鈥淵es.鈥� The pooled sample proportion who worked last summer is about

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(e) p^C=0.82
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