In exercises that call for two-sample procedures, you may use either of the two approximations for the degrees of freedom that we have discussed: the value given by your software or the smaller of and . Be sure to state clearly which approximation you have used.
7.66 Compare two marketing strategies.
A bank compares two proposals to increase the amount that its credit card customers charge on their cards. (The bank earns a percentage of the amount charged, paid by the stores that accept the card.) Proposal A offers to eliminate the annual fee for customers who charge $3600 or more during the year. Proposal B offers a small percent of the total amount charged as a cash rebate at the end of the year. The bank offers each proposal to an SRS of 150 of its existing credit card customers. At the end of the year, the total amount charged by each customer is recorded. Here are the summary statistics:
Group | |||
---|---|---|---|
A | 150 | $3385 | $468 |
B | 150 | $3124 | $411 |