Many small retailers advertise in their neighborhoods by sending out flyers. People deliver these to homes and are paid according to the number of flyers delivered. Each deliverer is given several streets whose homes become their responsibility. One of the ways retailers uses to check the performance of deliverers is to randomly sample some of the homes and ask the home owner whether he or she received the flyer. Recently university students started a new delivery service. They have promised better service at a competitive price. A retailer wanted to know whether the new company’s delivery rate is better than that of the existing firm.

She had both companies deliver her flyers. Random samples of homes were drawn and each was asked whether he or she received the flyer (2= Yes, 1 = No). Can the retailer conclude that the new company is better? (Test with α = .10.)