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E20-007 · Question #13

E20-007 Question #13: Real Exam Question with Answer & Explanation

The correct answer is C. The change in purchase size is not practically important,and the good p-value of the second study. See the full explanation below for the reasoning.

Question

The average purchase size from your online sales site is $17, 200. The customer experience team believes a certain adjustment of the website will increase sales. A pilot study on a few hundred customers showed an increase in average purchase size of $1.47, with a significance level of p=0.1. The team runs a larger study, of a few thousand customers. The second study shows an increased average purchase size of $0.74, with a significance level of 0.03. What is your assessment of this study?

Options

  • AThe difference in the change in purchase size between the two studies is troubling; The team should
  • BThe change in purchase size is small,but may aggregate up to a large increase in profits over the
  • CThe change in purchase size is not practically important,and the good p-value of the second study
  • DThe p-value of the second study shows a statistically significant change in purchase size. The new

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