A Company Is Researching the Effectiveness of a New Website

question 4

Multiple Choice

A company is researching the effectiveness of a new website design to decrease the time to access a website. Five website users were randomly selected,and their times (in seconds) to access the website with the old and new designs were recorded. To compare the times,they computed new website design time − old website design time. The results are shown here. For a 0.01 significance level,what is the decision regarding the hypothesis that the training was effective in improving customer relationships?

• A)Reject the null hypothesis and conclude that the new design reduced the mean access times.
• B)Reject the null hypothesis and conclude that the new design did not reduce the mean access times.
• C)Fail to reject the null hypothesis.
• D)Fail to reject the null hypothesis and conclude that the mean access times are inaccurate.

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Definitions:

Compounding

The process whereby interest is credited to an existing principal amount as well as to interest already paid, leading to exponential growth over time.

Investment

The allocation of resources (such as capital) to assets with the expectation of generating future profit or income.

Intrinsic Value

The actual value of a company or an asset based on underlying perceptions of its true value including aspects of both tangible and intangible factors.

Present

The current moment in time, often used as a reference point in discussions about time value of money.