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

question 45

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 samples 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 null hypothesis will be rejected if the test statistics is

• A) greater than 1.645
• B) less than 1.645
• C) greater than -1.645
• D) less than -1.645

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Definitions:

Depreciation Expense

The portion of the cost of a fixed asset that is considered consumed in each period of the asset's useful life.

Retrospective Adjustments

Adjustments made to the financial statements of prior periods when adopting a new accounting principle, as if that principle had always been applied.

Salvage Value

The estimated residual value of an asset after its useful life is over.

Straight-Line Method

A method of calculating depreciation of an asset which spreads the cost evenly across the useful life of the asset.