Online now reports that 30% of online customers who fail to complete an online p
ID: 3243759 • Letter: O
Question
Online now reports that 30% of online customers who fail to complete an online purchasee fail because they are concerned about the security of their purchase information; 20% fail because they are confused by the purchase instructions; 35% failed because they changed their mind about the purchase and 15% fail for other reasons. WebMarketing.comhas just completed a study of 500 randomly selected online customers who started but failed to complete an online purchase. In the sample, 136 customers said they failed because they were concerned about the security of their purchase; 114 said they were confused because of the purchse instructions; 165 said they failed because they changed their mind about their purchase; and 85 said they had failed due to other reasons. Conduct an appropriate Chi-square goodness-of-fit test to test null hypothesis that the proportions reported by Online Now are correct. Use a significance level of 5%
Explanation / Answer
Answer:
Based on the report of Online now, the percentage of transaction failures due to different reasons is:
Based on the new study by Webmarketing.com:
Null Hypothesis = Proportions reported by Online Now are correct
Chi square test at signficance level of 5%
Observed Number (O) Expected Number (E) (O - E)^2 / E 136 150 1.3067 114 100 1.9600 165 175 0.5714 85 75 1.3333 Total 5.1714Related Questions
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