Popularity of warranties for electronic appliances

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Marketing companies widely use surveys in order to monitor the opinions of the consumers. Last year, a survey was undertaken to ask consumer about who buys different warranties for electronic appliances. Of a sample of 1,000, 50% indicated that they would buy the warranty. This year, another survey of 900 consumers revealed that 40% will buy the warranty.

a) Test whether there is sufficient evidence to conclude that the popularity of warranties for electronic appliances has decreased. Use a 5% significance level and the critical value approach.

For this question, we should use H0: P1-P2 =0 OR H0: P1-P2 =0 and what is different ?

Reference no: EM132852952

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