There are two major cell phone providers in the Colorado Springs, Colorado area, one called HTC and

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There are two major cell phone providers in the Colorado Springs, Colorado area, one called HTC and the other, Mountain Communications. We want to investigate the “churn rate” for each provider. Churn is the number of customers or subscribers who cut ties with a company during a given time period. At the beginning of the month, HTC had 10,000 customers; at the end of the month, HTC had 9810 customers for a loss of 190. For the same month, Mountain Communications started with 12,500 customers and ended the month with 12,285 customers, for a loss of 215. At the .01 significance level, is there a difference in the churn rate for the two providers?

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Statistical Techniques in Business and Economics

ISBN: 978-1259666360

17th edition

Authors: Douglas A. Lind, William G Marchal

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