SCENARIO 9-8
One of the Biggest Issues Facing E-Retailers Is $\beta$

question 60

True/False

SCENARIO 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 Scenario 9-8, the value of the probability of committing a Type II
error? $\beta$ is 0.95.

---

Definitions:

Managerial Accounting Reports

Managerial accounting reports are internal financial reports that are tailored to the specific informational needs of a company's management, providing detailed insights on operational performance, costs, budgeting, and decision-making analyses.

GAAP

Generally Accepted Accounting Principles, which are a set of rules and standards used in financial reporting.

Usefulness to Management

The extent to which information or data can aid managers in making informed decisions regarding the operations and strategy of a business.

Conversion Costs

The sum of direct labor and manufacturing overhead costs incurred to convert raw materials into finished products.