Consumer Reports (January 2005) indicates that profit margins on extended warranties are much greater than on the purchase of most products. In this exercise we consider a major electronics retailer that wishes to increase the proportion of customers who buy extended warranties on digital cameras. Historically, 20 percent of digital camera customers have purchased the retailer's extended warranty. To increase this percentage, the retailer has decided to offer a new warranty that is less expensive and more comprehensive. Suppose that three months after starting to offer the new warranty, a random sample of 505 customer sales invoices shows that 158 out of 505 digital camera customers purchased the new warranty. Find a 95 percent confidence interval for the proportion of all digital camera customers who have purchased the new warranty. Are we 95 percent confident that this proportion exceeds .20? (Round your answers to 3 decimal places.) The 95 percent confidence interval is the entire interval vi above 0.20.

Q: There is some evidence that, in the years 1981— 85, a simple name change resulted in a short-term…

A:

Q: Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good…

A: Given Data  and calculation is shown below

Q: A famous Chinese restaurant would like to find out the change in demand on its dim-sum. After…

A:

Q: Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good…

A: State the hypotheses. That is, there is no evidence to conclude that proportion of stocks that went…

Q: Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good…

A:

Q: Saflok is an electronic door lock system made in Troy, Michigan, and used in modern hotels and other…

A: Let event A denotes that the door should be open when a card is inserted and the event B denotes the…

Q: A grocery store is reevaluating the retail price of their oranges. They have a contract where they…

A:

Q: Step 3: Assess the Evidence (Calculate the test statistic for the observed sample mean. Sketch the…

A: Given:

Correlation

Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

Linear Correlation

A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related. 

Regression Analysis

Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.