Question
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)
Homework Answers
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.
Not the answer you're looking for?
Similar Questions
An online retailer claims that an advertisement they are running has a 2% conversion rate, which...
An online retailer claims that an advertisement they are running
has a 2% conversion rate, which means that 2% of those clicking the
advertisement will make a purchase at the site. An analysis of 1000
randomly chosen clicks of the advertisement revealed that 1.08% of
those visitors actually made a purchase. Use this data to calculate
the test statistic for a test of the retailer's claim.
1.96
None of the these
-6.57
-2.08
-2.81
2.07
1. A city official claims that the proportion of all commuters who are in favor of...
1. A city official claims that the proportion of all commuters
who are in favor of an expanded public transportation system is
50%. A newspaper conducts a survey to determine whether this
proportion is different from 50%. Out of 225 randomly chosen
commuters, the survey finds that 90 of them reply yes when asked if
they support an expanded public transportation system. Test the
official’s claim at α = 0.05.
2. A survey of 225 randomly chosen commuters are asked...
Answer 4 questions you feel confidently about Elizabeth has developed a promotional campaign for a client...
Answer 4 questions you feel confidently about
Elizabeth has developed a promotional
campaign for a client that promises a hefty return for her owned
cash-strapped business. While the campaign does not violate any
laws, it might be considered manipulative and misleading,
especially when targeted toward senior citizens. If Elizabeth were
to consult the AMA Code of Ethics she’d discover:
- there is a high value placed on
creative approaches for clients which can outweigh other concerns
if the client or...
Answer 4 questions you feel confidently about Elizabeth has developed a promotional campaign for a client...
Answer 4 questions you feel confidently about
Elizabeth has developed a promotional campaign for a client that
promises a hefty return for her owned cash-strapped business. While
the campaign does not violate any laws, it might be considered
manipulative and misleading, especially when targeted toward senior
citizens. If Elizabeth were to consult the AMA Code of Ethics she’d
discover:
- there is a high value placed on creative approaches for
clients which can outweigh other concerns if the client or...
Women athletes at the a certain university have a long-term graduation rate of 67%. Over the...
Women athletes at the a certain university have a long-term
graduation rate of 67%. Over the past several years, a random
sample of 36 women athletes at the school showed that 23 eventually
graduated. Does this indicate that the population proportion of
women athletes who graduate from the university is now less than
67%? Use a 10% level of significance.
(a) What is the level of significance?
State the null and alternate hypotheses.
H0: p = 0.67; H1: p ≠...
Company Case Allstate: Bringing Mayhem to the Auto Insurance Advertising Wars In the spring of 1950,...
Company Case Allstate: Bringing Mayhem to the Auto Insurance
Advertising Wars
In the spring of 1950, the teenage daughter of Allstate
general sales manager Davis Ellis was stricken with hepatitis
shortly be- fore she was to graduate from high school. The worried
executive arrived home from work one evening just as his wife
returned from the hospital where their daughter was admitted. As he
met her at the front door, his wife reported, “The hospital said
not to worry. ....
Pandora is the Internet’s most successful subscription radio service. As of June 2013, it had over...
Pandora is the Internet’s most successful subscription radio
service. As of June 2013, it had over 200 million registered users
(140 million of which access the service via a mobile device) and
over 70 million active listeners. Pandora now accounts for more
than 70% of all Internet radio listening hours and a 7% share of
total U.S. radio listening (both traditional and Internet). At
Pandora, users select a genre of music based on a favorite
musician, and a computer algorithm...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In
INNOVATION
Deep Change: How Operational Innovation Can Transform Your
Company
by
Michael Hammer
From the April 2004 Issue
Save
Share
8.95
In 1991, Progressive Insurance, an automobile insurer based in
Mayfield Village, Ohio, had approximately $1.3 billion in sales. By
2002, that figure had grown to $9.5 billion. What fashionable
strategies did Progressive employ to achieve sevenfold growth in
just over a decade? Was it positioned in a high-growth industry?
Hardly. Auto insurance is a mature, 100-year-old industry...
MK Restaurant: Branding of Thai-Style Hotpot The restaurant industry is one of the most...
MK Restaurant: Branding of Thai-Style Hotpot
The restaurant industry is one of the most competitive in
Thailand. With a large number of players ranging from restaurants
in five-star hotels, global fast-food chains to small stalls along
the streets and everything in between, the Thais are spoiled for
choice. In addition, as the world becomes globalized, consumers are
familiar with international dishes and would not hesitate to try
new offerings from the other side of the globe. As a...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case
analysis questions
1-How is New Balance performing compared to its primary rivals?
How will the acquisition of Reebok by Adidas impact the structure
of the athletic shoe industry? Is this likely to be favorable or
unfavorable for New Balance?
2- What issues does New Balance management need to address?
3-What recommendations would you make to New Balance Management?
What does New Balance need to do to continue to be successful?
Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 52 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago
asked 3 hours ago
asked 3 hours ago
asked 3 hours ago
asked 3 hours ago
asked 3 hours ago
asked 4 hours ago