TABLE 9-8 One of the Biggest Issues Facing E-Retailers Is the Ability

question 51

Multiple Choice

TABLE 9-8
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 10.1%.The website at the company was redesigned in an attempt to increase its conversion rates.A sample of 200 browsers at the redesigned site was selected.Suppose that 24 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.
-Referring to Table 9-8,the parameter the company officials are interested in is

• A)the mean number of browsers who buy something in their visit to the company's website.
• B)the total number of browsers who buy something in their visit to the company's website.
• C)the mean number of company officials who buy something in their visit to the company's website.
• D)the proportion of browsers who buy something in their visit to the company's website.

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Definitions:

Unit Contribution Margin

The amount of revenue remaining per unit after deducting variable costs; calculated as unit selling price minus unit variable costs.

Unit Sales Price

The amount that a business charges for one unit of its product or service.

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Cost Element

A cost that varies directly with the level of production or sales volume, such as materials and direct labor.