3. Now compute the probability that a visitor who had received the free shipping offer abandoned their cart. Then compute the probability that a visitor who had not received the free shipping offer abandoned their cart. If it offers free shipping to 10,000 randomly selected customers, how many additional orders should the online retailer expect? Please answer question 3.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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Shopping cart abandonment is a major concern for online retailers. This happens when a visitor to the online retailer puts one or more items in their virtual shopping cart but then abandons the cart, leaving the retailer without having made a purchase. To reduce cart abandonment, one online retailer is considering a “pop-up” free shipping offer to visitors who put an item in their virtual shopping cart. The online retailer decided to test the effectiveness of this free shipping offer. During a randomly selected two-week period, 718 visitors to the website placed at least one item in their virtual shopping cart. The retailer offered free shipping to 350 of those visitors; the remainder did not get the offer. Of those who received the free shipping offer, 191 abandoned their carts. Of those who did not receive the offer, 246 abandoned their carts.
Complete the contingency table with actual frequencies (not probabilities), including joint and marginal frequencies, using the information given. Compute the expected frequencies, assuming independence, of the free shipping offer (Yes/No) and cart abandoned (Yes/No).

3. Now compute the probability that a visitor who had received the free shipping offer abandoned their cart. Then compute the probability that a visitor who had not received the free shipping offer abandoned their cart. If it offers free shipping to 10,000 randomly selected customers, how many additional orders should the online retailer expect?

Please answer question 3.

Cart Abandoned
Actual Frequencies
Yes
No
Yes
191
350
No
246
718
Еxpected
Cart Abandoned
Frequencies
Yes
No
Yes
No
Free
Free
Shipping
Shipping
Offer
Offer
Transcribed Image Text:Cart Abandoned Actual Frequencies Yes No Yes 191 350 No 246 718 Еxpected Cart Abandoned Frequencies Yes No Yes No Free Free Shipping Shipping Offer Offer
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