Question: Four different customer rewards programs are being considered by Earhart
Four different customer rewards programs are being considered by Earhart Airlines. In a test of consumer response, a sample of 600 passengers was selected randomly and offered rewards under the various programs for one year: 150 passengers received rewards under Program A; 150 passengers received Program B rewards; 150 passengers received Program C rewards; and 150 received Program D rewards. At the conclusion of the test year, passengers in each program were asked about their level of satisfaction with their rewards program. Seventy four percent of Program A participants, 68% of the Program B participants, 70% of the Program C participants, and 64% of the Program D participants reported that they were “highly satisfied “with their program. Use the chi square test of proportion differences to test the hypothesis that the proportion of Earhart passengers who would be “highly satisfied “with their rewards program would be the same for all four programs. Use a significance level of 5%.
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