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A Satellite TV Provider Finds That 15% of Their Customers

Question 19

Multiple Choice

A satellite TV provider finds that 15% of their customers switch providers when a discount offer expires. A consultant tries a small experiment and offers a random sample
Of customers a free 6 months of service if they commit to staying as a customer for two
Years. Not surprisingly, they find that the new switching rate is lower by a statistically
Significant amount. Should they offer short-term discounts to all their customers?


A) The p-value of the hypothesis test.
B) The cost of the service.
C) How much the switch is lowered (the effect size) .
D) A, B and C.
E) Both B and C.

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