In the past, 85% of a lawn-care service’s continue with the service the following year. Last year, the service changed management. In a sample of 120 customers, 96 are going to continue using the service next year. a) Test the hypothesis (at the 5% level of significance) that the proportion of repeat customers has changed? b) What is the p-value?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
In the past, 85% of a lawn-care service’s continue with the service the following year. Last year, the
service changed management. In a sample of 120 customers, 96 are going to continue using the service
next year.
a) Test the hypothesis (at the 5% level of significance) that the proportion of repeat customers has
changed?
b) What is the p-value?
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