A retailer maintains a web site that it uses to attract shoppers. The average pu

Question

A retailer maintains a web site that it uses to attract shoppers. The average purchase amount is $80. The retailer is evaluating a new web site that would, it hopes, encourage shoppers to spend more. Let represent the average amount spent per customer at its redesigned web site. _____ 11. The appropriate null hypothesis for testing the probability of the new design is H0: 80. _____ 12. If the -level of the test is 0.05, then there is at most a 5% chance of incorrectly rejecting H0. _____ 13. If the p-value of the test of H0 is less than , then the test has produced a Type II error. _____ 14. If the test used by the retailer rejects H0 with the -level set to 0.05, then it would also reject H0 with the = 0.01. _____ 15. The larger the sample size used to evaluate the new design, the smaller the chance for a Type II error. _____ 16. If the t-statistic rejects H0, then we would also reject H0 had we obtained the p-value using a normal distribution rather than a t distribution.

Explanation / Answer

Solution:-

A retailer maintains a web site that it uses to attract shoppers. The average purchase amount is $80. The retailer is evaluating a new web site that would, it hopes, encourage shoppers to spend more. Let represent the average amount spent per customer at its redesigned web site. True

11. The appropriate null hypothesis for testing the probability of the new design is H0: 80.True

12. If the -level of the test is 0.05, then there is at most a 5% chance of incorrectly rejecting H0.True

13. If the p-value of the test of H0 is less than , then the test has produced a Type II error.False

14. If the test used by the retailer rejects H0 with the -level set to 0.05, then it would also reject H0 with the = 0.01. false

15. The larger the sample size used to evaluate the new design, the smaller the chance for a Type II error. True

16. If the t-statistic rejects H0, then we would also reject H0 had we obtained the p-value using a normal distribution rather than a t distribution. False

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.