Customers of Lands Beginning, a major clothing retailer, can place orders via telephone or via a web site. Management would like to know if there is a difference in the level of customer satisfaction with the ordering process, depending on how the order was placed. Let 1 represent the proportion of telephone-order customers who are ‘highly satisfied’ with the ordering process, and let 2 represent the proportion of web-order customers who are ‘highly satisfied.’ Management wishes to test H0: 1 = 2 vs. H1: 1 ≠ 2. A sample of 200 phone-order customers is taken, and 188 state that they are highly satisfied. A sample of 220 web-order customers is taken, and 209 state that they are highly satisfied. 1. The test statistic for testing H0 vs. H1 is equal to: Crank out the z-statistic for comparing proportions. A B C D E F G H I -1.98 -0.45 -0.24 1.04 1.26 1.88 2.09 2.98 4.28 2. At the  = 0.05 level of significance, this test would reject the null hypothesis if: Reject in the upper or lower 2.5% tails of the z-distribution. (a) z > 1.28 (b) z > 1.645 or z < -1.645. (c) z < -1.645. (d) z > 2.33. (e) z > 1.96 or z < -1.96 (f) z > 2.576 or z < -2.576 3. It is becoming more common for bank customers to do the majority of their banking activities on the web. A major bank is interested in testing a manager’s claim that customers who do their banking on the web have, on average, higher checking account balances than customers who bank in person. Let 1 represent the population mean account balance for web banking customers, and let 2


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