There are two major cell phone providers in the Colorado Springs, Colorado, area, one called HTC and the other, Mountain Communications.
There are two major cell phone providers in the Colorado Springs, Colorado, area, one called HTC and the other, Mountain Communications. We want to investigate the “churn rate” for each provider. Churn is the number of customers or subscribers who cut ties with a company during a given time period. At the beginning of the month, HTC had 10,000 customers; at the end of the month, HTC had 9,810 customers for a loss of 190. For the same month, Mountain Communications started with 12,500 customers and ended the month with 12,285 customers, for a loss of 215. At the .01 significance level, is there a difference in the churn rate for the two providers?