SCENARIO 9-8
One of the biggest issues facing e-retailers is the ability to turn browsers into buyers. This is
measured by the conversion rate, the percentage of browsers who buy something in their visit to a
site. The conversion rate for a company's website was 10.1%. The website at the company was
redesigned in an attempt to increase its conversion rates. A sample of 200 browsers at the redesigned
site was selected. Suppose that 24 browsers made a purchase. The company officials would like to
know if there is evidence of an increase in conversion rate at the 5% level of significance.
-Referring to Scenario 9-8, the value of the probability of committing a Type II
error? $\beta$ is 0.95.

Question

Quizplus · Accepted Answer

A Type II error ($\beta$) is the probability of failing to reject the null hypothesis when it is false. A $\beta$ of 0.95 would imply a very high probability of not detecting an actual increase, which is unlikely given the context of hypothesis testing at a 5% significance level.

SCENARIO 9-8 One of the Biggest Issues Facing E-Retailers Is β\betaβ

SCENARIO 9-8
One of the Biggest Issues Facing E-Retailers Is $\beta$