Question: A cable company Badcast sends mail to get new subscribers. The mail includes a promotion of Free HBO & Cinemax for 3 months. The promotion
A cable company "Badcast" sends mail to get new subscribers. The mail includes a promotion of "Free HBO & Cinemax for 3 months". The promotion has a historical response of 10% success. A new manager thinks a better promotion would be "Free Phone Service for 2 Years". Free Phone Service for 2 Years is more expensive than Free HBO & Cinemax for 3 months. Before implementing, she tests out the new promotion by mailing it to 650 potential customers. Of these, 76 end up subscribing. Should Badcast switch to "Free Phone Service for 2 Years?" Test at the = .05 significance level. Also, what is the p-value
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