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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 web site was 10.1% The web site at the company was redesigned in an attempt to increase its conversion rates. Samples of 200 browsers at the redesigned site were 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 value of the probability of committing a type II error þ is 0.95.
ROCE
Return on Capital Employed, a financial metric that measures a company's profitability and the efficiency with which its capital is employed.
After-Tax Cost
The expense of an action or investment after accounting for the effects of taxes.
Leverage
The use of borrowed funds to increase the potential return of an investment or project.
ROE
Return on Equity evaluates a company's profit generation capacity by showing the amount of profit made from the investment of its shareholders.
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