In the startup world, one of the biggest issues that a young entrepreneur faces is the ability to turn web-site visitors into buyers. This is measured by the conversion rate, the percentage of web-site visitors who buy something in their visit to a site. Until today you believed that the conversion rate for your startup was 10.1%. You have redesigned your website in an attempt to increase your startup's conversion rates. A sample of 250 web-site visitors at the redesigned web-site was selected. Suppose that 30 web-site visitors made a purchase. Your co-founder is asking you if there is evidence of an increase in conversion rate at the 1% level of significance. Given the data above, what p-value should the startup co-founders use to decide whether the conversion rate has increased? What will your decision be
In the startup world, one of the biggest issues that a young entrepreneur faces is the ability to turn web-site visitors into buyers. This is measured by the conversion rate, the percentage of web-site visitors who buy something in their visit to a site. Until today you believed that the conversion rate for your startup was 10.1%. You have redesigned your website in an attempt to increase your startup's conversion rates. A sample of 250 web-site visitors at the redesigned web-site was selected. Suppose that 30 web-site visitors made a purchase. Your co-founder is asking you if there is evidence of an increase in conversion rate at the 1% level of significance.
Given the data above, what p-value should the startup co-founders use to decide whether the conversion rate has increased? What will your decision be?
- A.
p-value = 0.5248 and therefore we Do Not Reject H0.
- B.
p-value = 0.9758 and therefore we Reject H0.
- C.
p-value = 0.9758 and therefore we Do Not Reject H0.
- D.
p-value = 0.1594 and therefore we Do Not Reject H0.
- E.
p-value = 0.1594 and therefore we Reject H0.
- F.
p-value = 0.5248 and therefore we Reject H0.
- G.
p-value = 0.0484 and therefore we Do Not Reject H0.
- H.
p-value = 0.0484 and therefore we Reject H0.
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