Question: one of the biggest issues facing eretailers is the ability...
One of the biggest issues facing e-retailers is the ability to turn browsers into buyers. This is measured by the conversion rate, the percentage of browsers who buy something in their visit to a site. The conversion rate for a company's website was 0.28 (π). The website at the company was redesigned in an attempt to increase its conversion rates. A samples of 300 browsers at the redesigned site was selected. Suppose that 90 browsers made a purchase. The company officials would like to know if there is evidence of an increase in conversion rate at the 5% level of significance (α = 0.05).
1. State your null and alternate hypotheses:
2. What is the value of the test statistic? Please show all the relevant calculations.
3. What is the rejection criterion based on the p-value approach?
4. What is the Statistical decision (i.e. reject /or do not reject the null hypothesis) based on the p-value obtained?