Question

Six months ago, Goodbuys supermarkets launched their new website which allows customers to shop online. The...

Six months ago, Goodbuys supermarkets launched their new website which allows customers to shop online. The web development company who created the web site believes that 10% of Goodbuy’s customers will use the site for shopping. Goodbuy’s management is interested in whether the actual proportion of customers who would shop online is any different to that claimed by the web development company. A sample of 400 randomly selected Goodbuys customers was taken. Of the 400 customers, 28 said they would use the new website to shop online. QUES 1 ( 4 POINTS ) Write down the null and alternative hypotheses in both symbols and words for the above situation. Question 2 (1 point) What type of test are we conducting? Question 3 (2 points) Describe the rejection region for this test (Use 5% level of significance). Question 4 (2 points) What is the decision rule for this test? Question 5 (3 points) Write down the formula/s for the test statistic and calculate its value. Question 6 (3 points)What is the conclusion of the test? Question 7 (3 points) Goodbuys is considering expanding their website (at a considerable cost). Given this, what are the implications for Goodbuys if a Type I error occurs.

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