Adoption of the new rental policy


A major video rental chain recently decided to allow customers to rent movies for three nights rather than one. The marketing team that made the decision reasoned that at least 70% of customers would return the movie by the second night anyway. A sample of 500 customers found 68% returned the movies prior to the third night.

A) Given the marketing team's estimate, what would be the probability of a sample result with 68% or fewer returns prior to the third night?

B) Based on the calculations, would u recommend the adoption of the new rental policy? Support the answer with statistical reasoning and calculations.

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Basic Statistics: Adoption of the new rental policy
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