Question

An organization wishes to test if the customer churn rate is different between millennials and non-millennials. Using information from a large sample, analysts at the organization computed a 95% confidence for the difference between the population churn rates. The resulting confidence interval for the difference in population churn rates (as percentages) is 10% plus or minus 6%. The data provides sufficient evidence to conclude that the churn rate for millennials is different than the churn rate for non-millennials. Is this TRUE of FALSE?

Answer 1

Specifically, if a statistic is significantly different from 0 at the 0.05 level, then the 95% confidence interval will not contain 0. ... Whenever an effect is significant, all values in the confidence interval will be on the same side of zero (either all positive or all negative).

Here, the interval is 4% to 16%

So, it does not contain zero.

The data provides sufficient evidence to conclude that the churn rate for millennials is different than the churn rate for non-millennials. This is true.