Use the following scenario for problems 2 and 3: An online clothing retailer knows that historically...

  
 

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Use the following scenario for problems 2 and 3: An online clothing retailer knows that historically 40% of potential customers that visit its website actually buy something. To see if they can increase the proportion of visitors who buy something, they randomly select 2000 visitors to the website and offer them free shipping if they make a purchase. Of the 2000 visitors who receive this offer, 860 actually buy something. The company wants to test to see if offering free shipping to all customers would increase the proportion who would buy something. 3. Refer back to the previous scenario used in 2. Now the company is interested in the mean of the amount spent by customers who do buy something. Historically, the mean has been $120. The company plans to see if the mean amount spent by the customers who bought something after being offered free shipping is different from what customers have historically spent. Suppose the mean amount spent by these 860 customers is $122 with a standard deviation of $25. Test to see if we can conclude that the mean amount spent by customers who bought something after being offered free shipping is different from what customers have historically spent. Show all details of the test. a. Define the parameter and state the hypotheses. [3pts] b. Find the observed sample statistic and the test statistic. Use proper notation for the sample statistic (x or p), and clearly identify your test statistic as either a 2-score or a t-score.. [3pts] Observed Sample Statistic: Test Statistic: c. Find the p-value of your test statistic. You are required to graph the test statistic on its corresponding distribution, shade the appropriate area, and provide correct calculator/Statkey documentation. Box final answer. [3pts] d. Make a generic decision about H. [2pts] e. Make a conclusion in the context of the problem. [2pts] p-value= Use the following scenario for problems 2 and 3: An online clothing retailer knows that historically 40% of potential customers that visit its website actually buy something. To see if they can increase the proportion of visitors who buy something, they randomly select 2000 visitors to the website and offer them free shipping if they make a purchase. Of the 2000 visitors who receive this offer, 860 actually buy something. The company wants to test to see if offering free shipping to all customers would increase the proportion who would buy something. 3. Refer back to the previous scenario used in 2. Now the company is interested in the mean of the amount spent by customers who do buy something. Historically, the mean has been $120. The company plans to see if the mean amount spent by the customers who bought something after being offered free shipping is different from what customers have historically spent. Suppose the mean amount spent by these 860 customers is $122 with a standard deviation of $25. Test to see if we can conclude that the mean amount spent by customers who bought something after being offered free shipping is different from what customers have historically spent. Show all details of the test. a. Define the parameter and state the hypotheses. [3pts] b. Find the observed sample statistic and the test statistic. Use proper notation for the sample statistic (x or p), and clearly identify your test statistic as either a 2-score or a t-score.. [3pts] Observed Sample Statistic: Test Statistic: c. Find the p-value of your test statistic. You are required to graph the test statistic on its corresponding distribution, shade the appropriate area, and provide correct calculator/Statkey documentation. Box final answer. [3pts] d. Make a generic decision about H. [2pts] e. Make a conclusion in the context of the problem. [2pts] p-value=

Answer rating: 100% (QA)

Sure Here are the solutions to problems 2 and 3 Problem 2 a Define the parameter and state the hypotheses The parameter of interest is the proportion ... View the full answer