Long Distance Carrier is trying to see the effect of offering “1 month free” with a monthly fi xed fee of $10.95, versus an offer of a low monthly fee $8.75 with no free month. To test which might be more attractive to consumers, Long Distance runs a brief market test: 12 phone reps make calls using one approach, and 10 use the other. The following number of customers agreed to switch from their present carrier to LDC: Offer Number of Switches 1 month free 118 115 122 99 106 125 102 100 92 103 113 129 Low monthly fee 115 126 113 110 135 102 124 137 108 128 Test at a signifi cance level of 10 percent whether there are signifi cant productivity differences with the two offers.
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