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

question 42

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 statistic 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:

Fixed Overhead Costs

Indirect expenses of running a business that are not affected by changes in the volume of goods or services produced, such as rent, salaries, and insurance.

Overhead Costs

Ongoing expenses related to the operation of a business, such as rent, utilities, and insurance, that are not directly tied to production.

Overhead Volume Variance

The difference between allocated overhead based on standard hours allowed and the actual overhead incurred, reflecting efficiency in utilizing resources.

Normal Capacity Hours

A calculation of the maximum amount of work that an organization can complete in a given period under normal conditions.