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Q1) Kim Davis has decided to buy a cellular phone, but she is unsure about which rate plan to choose. "Regular" plan charges fixed fee of= $55 per month for 1,000 minutes of airtime plus $0.33 per minute for any time over 1,000 minutes. "Executive" plan charges a fixed fee of $100 per month for 1,200 minutes of airtime plus $0.25 per minute over 1,200 minutes.
a) If Kim expects to use phone for 21 hours per month, which plan must she choose?
b) At what level of utilize would Kim be indifferent between two plans?
The main purpose of this exercise is to check your understanding of significance level, p-values and power .
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