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

question 38

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 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 parameter the company officials is interested in is

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

---

Definitions:

Overvalued

A term used to describe a situation in which a security or asset is trading at a price that exceeds its intrinsic value.

Undervalued

A description of an asset or currency whose price is believed to be lower than its intrinsic value.

Mutual Fund Managers

Professionals responsible for managing the investment portfolio of a mutual fund, making decisions about which securities to buy, hold, or sell.

Future Value

The value of a current asset at a specific date in the future based on an assumed rate of growth.