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Proportion Test Currently, the conversion rate of the advertisement campaign is 11%. The conversion rate is...

Proportion Test

Currently, the conversion rate of the advertisement campaign is 11%. The conversion rate is the number of conversions (i.e., sales) divided by the total number of clicks. A new advertisement campaign has been proposed and studied. A sample of 10,000 customers clicked the new advertisement and 1,150 of them purchased the product. Do the results of this study support the claim that the new advertisement campaign is more effective than the current advertisement?

a) State the null and alternative hypotheses

b) Compute the test statistics

c) Draw the statistical conclusion (at 95% confidence level)

Math   Statistics-And-Probability   
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Answer #1

a. Here claim is that the new advertisement campaign is more effective than the current advertisement.

Which means p>0.11

Hence null and alternative hypothesis are vs

b. Here and

As n is sufficient large we will use z test statistics

c. P value is

As P value is greater than alpha, we fail to reject the null hypothesis

Hence we do not have sufficient evidence to support the claim that the new advertisement campaign is more effective than the current advertisement.

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