MarketingExperiments.com has conducted studies to determine the percentage of online orders that are started by customers and then abandoned for various reasons— poorly designed forms, loss of customer confidence in the security of the transaction, overly personal questions, etc. For one company— call it Merchant A— that requires registration and a monthly hosting fee, a random sample of 384 registrations that were begun by prospective users was selected and analyzed. Of the 384 registrations in the sample that were begun, 116 were not completed (source: marketing experiments.com/ archives). Suppose the company’s goal is to have a non-completion rate of 25% or less. Would the sample result reported here cause us to reject a null hypothesis that the company’s goal has been met? Use a significance level of .05.
a. Show the null and alternative hypotheses.
b. Compute the pvalue for the sample result and explain what it means.
c. Use the pvalue from part b to decide whether you will reject the null hypothesis. Explain your decision.