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A business which sells flowers and gifts through internet sales previously found that 9.8% of website hits resulted in a sale. After redesigning its website
A business which sells flowers and gifts through internet sales previously found that 9.8% of website hits resulted in a sale. After redesigning its website it takes a sample of 200 potential customers who browse the site and checks whether they make a purchase. Suppose that 24 browsers make a purchase. Consider a hypothesis test to see if there is evidence of an increased sales rate at the 0.01 level of significance.
What is the critical value for the 1% hypothesis test? State your answer to 3 d.p.
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