Question: Needing help with this practice question. Consumer Reports (January 2005) indicates that prot margins on extended warranties are much greater than on the purchase of

Needing help with this practice question.

Needing help with this practice question. Consumer Reports (January 2005) indicates that

Consumer Reports (January 2005) indicates that prot margins on extended warranties are much greater than on the purchase of most products. In this exercise we consider a major electronics retailer that wishes to increase the proportion of customers who buy extended warranties on digital cameras. Historically, 20 percent of digital camera customers have purchased the retailer's extended warranty. To increase this percentage, the retailer has decided to offer a new warranty that is less expensive and more comprehensive. Suppose that three months after starting to offer the new warranty, a random sample of 500 customer sales invoices shows that 152 out of 500 digital camera customers purchased the new warranty. Letting p denote the proportion of all digital camera customers who have purchased the new warranty, calculate the p-value fortesting H0: p s .20 versus Ha: p > .20. How much evidence is there that p exceeds .20? (Round .5 value to 3 decimal and zvalue to 2 decimal places.) H0: p S 0.20 versus Ha: p > 0.20 Does the difference between 15 and .2 seem to be practically important? 0 Yes 0 No

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