Question

there are two websites designed where the "add to basket" button was placed at different positions on the web-page. The first website was shown to 178 visitors, of which 150 made a purchase. The second website was shown to 52 visitors, of which 27 made the purchase.

In order to test if the two websites are significantly different in the proportion of people that made a purchase, a hypothesis test at a significant level of 5% should conclude:

A. the two versions of the websites are definitely similar with regards to the proportion of people making a purchase

B. the two versions of website are definitely different with regards to the proportion of people making a purchase

C. the P-Value of the hypothesis test is so small that one must reject the null hypothesis

D. The hypothesis test is inconclusive

Please show clear work and explanation. I'd like to know how to think it through. Thank you!!!

Answer 1

We have used z-test for two proportions to test hypothesis. Following are the test followed for the same:

From the above hypothesis testing we can see that P-value is less than 0.001 (Very sample), so we reject null hypothesis. In other words, at 0.05 significance level, there is enough evidence to conclude that the two websites are significantly different in the proportion of people that made a purchase.

Correct Answer: Option C (the P-Value of the hypothesis test is so small that one must reject the null hypothesis)