A bank wants to evaluate which credit card would be moreattractive to its customers, one with a high interest rate forunpaid balances but no annual fee or one with a low interest ratefor unpaid balances for an annual fee of $50. Foe a random sampleof 100 of its 52,000 customers, 40 said they prefer the one thathas an annual fee. Would you conclude statistically that morepeople prefer the card with no annual fee?
Test the hypothesis that customers are more likely to prefer thecard with no annual fee than if they were randomly selecting forthe significance level of 0.05.
