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Example 143


Example 143:  A product reliability study was conducted on laptops by the company Square Trade Inc.  Among 11,500 entry-level laptops (priced between $400 - $1000) followed for one year, 541 malfunctioned.  Among 9,300 premium laptops (priced over $1000) followed for one year, 391 malfunctioned.  Use a 0.01 significance level to test the claim that the incidence of malfunction is higher for entry-level laptops than it is for premium laptops.   Does it seem that spending more money on a laptop will offer you some protection from the inconvenience of a malfunction? 


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