Question: One of the biggest issues facing e-retailers is the ability to reduce the proportion of customers who cancel their transactions after the have selected their products. It has been estimated that about half of prospective customers cancel their transactions after they have selected their products. Suppose that a company changed its Web site so that customers could use a single-page checkout process rather than multiple pages. A sample of 500 customers who had selected their products were provided with the new checkout system. Of these 500 customers, 210 cancelled their transaction after they have selected their product.
a. At the 0.01 level of significance, is there evidence that the proportions of customers who selected products and then cancelled their transaction was less the 0.50 with the new system?
b. Suppose that a sample of 100 customers who has selected their products were provided with the new checkout system and that 42 of those customers cancelled their transactions after they had selected their products. At the 0.01 level of significance, is there evidence that the proportion of customers who selected products and then cancelled their transaction was less than 0.50 with the new system.
c. Compare the results of (a) and (b) and say what effect that sample size has on the outcoMeand in general in hypothesis testing