Many stores sell extended warranties for products they sell. These are very lucrative for store owners. To learn more about who buys these warranties a random sample of a store’s customers who...


Many stores sell extended warranties for products they sell. These are very lucrative for store owners. To learn more about who buys these warranties a random sample of a store’s customers who recently purchased a product for which an extended warranty was available was drawn. Among other variables each respondent reported whether they paid the regular price or a sale price and whether they purchased an extended warranty.


Can we conclude at the 10% significance level that those who paid the regular price are more likely to buy an extended warranty?




May 26, 2022
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