An online clothing company has historically had to process e…
Questions
An оnline clоthing cоmpаny hаs historicаlly had to process exchanges for 22% of online orders due to customers choosing the incorrect size. They developed an online size guide to try to lower this proportion. Before launching the size guide fully, the company tries the size guide for a sample of orders so they can do a hypothesis test at the 5% significance level to see if the size guide will lower the population proportion of orders needing an exchange. Blank/Part 1: Write the hypotheses. Online you can just type in a sentence but on your work sheet, label this problem 3 and write the hypotheses using good notation. Blank/Part 2: Of the listed sample proportions below, which would provide the STRONGEST evidence against the null and in support of the alternative hypothesis? (answer a, b or c) a) 0.27 b) 0.20 c) 0.18 d) 0.06 Blank/Part 3: If the p-value came out to be 0.018, which choice below (a, b, or c) has the correct conclusion in context. a) Reject the null hypothesis. At the 5% significance level there is enough evidence to conclude the size guide will lower the population proportion of orders needing an exchange. b) Fail to reject the null hypothesis. At the 5% significance level there is not enough evidence to conclude the size guide will lower the population proportion of orders needing an exchange. c) There is a 1.8% chance the size guide will lower the proportion of orders needing an exchange. Blank/Part 4: Based on your answer to blank/part 3, which type of error are you at risk of making?
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