Question: Among its other features, the OurCampus! Web site allows customers to purchase OurCampus! LifeStyles merchandise online. To handles payment processing, the management of OurCampus! Has contracted with the following firms:

Pay A Friend (PAF): an online payment system with which customers and businesses such as OurCampus! Register in order to exchange payments in a secure and convenient manner without the need for a credit card.

Continental Banking Company (Conbanco): a processing services provider that allows OurCampus! Customers to pay for merchandise using nationally recognized credit cards issued by a financial institution.

To reduce costs, the management is considering eliminating one of these two payment systems. However, Virginia Duffy of the sales department suspects that customers use the two forms of payment in unequal numbers and that customers displays different buying behaviors when using the two forms of payment. Therefore, she would like to first determine

1. The proportion of customers using PAF and the proportion of customers using a credit card to pay for their purchases.
2. The mean purchase amount when using PAF and the mean purchase amount when using the credit card.

Assist Ms. Duffy by preparing an appropriate analysis based on a random sample of 50 transactions that she has prepared and placed in an internal file on the OurCampus! Web site. Summarize your findings and determine whether Ms. Duffy’s conjectures about OurCampus! Customer purchasing behaviors are correct. If you want the sampling error to be no more than $3 when estimating the mean purchase amount, is Duffy’s sample large enough to perform a valid analysis?

Price: $2.99

Solution: The downloadable solution consists of 4 pages
Deliverable: Word Document