Question 1

Sonic Selection would like to put firm performance metrics in place for its sales managers, based off customer conversion rates, as they would like to reward the sales managers based on the rate at which users that browse the site end up purchasing tracks. The need for changing the incentive scheme has been driven by information recently published by the eCommerce Association around industry conversion rates. 

The eCommerce Association collects and analyses data from a broad range of companies involved with trading of goods or offering services over any electronic network, predominantly the internet. This incorporates all online stores, including digital music stores like Sonic Selection. The eCommerce Association has conducted a study on 312 e-commerce companies,whichindicates that the expected conversion rate is 8%, witha standard deviation of 1.1%. This benchmark is far higher than Sonic Selection’s internal benchmark of a 5% conversion rate.

1.1 Given the recently published benchmarking information, Sonic Selection is well below the benchmark in terms of e-commerce conversion rates. What other factors, besides industry benchmarks, need to be considered when it comes to setting performance metrics? Name and briefly discuss at least 3 other factors.Your answer may not exceed the word limit.

1.2 Based on the information provided, and your answer to question 1.1, suggest a suitable conversion rate forSonic Selection and justify your choice.  Should it be higher or lower than the industry average?Your answer may not exceed the word limit.

Question 2

Sonic Selection would like to conduct A/B testing to improve the average revenue per site visitor. In order to reach their target, which is an average increase of $200.00 inrevenue per site visitor, a new landing page is designed and then compared to the original website landing page. As the data analyst at Sonic Selection, you have been tasked with conducting an analysis as to whether the new website design achieves an increase in revenue per site visitor.  

A/B testing re-cap:

If you would like to revise what A/B testing entails, follow this link to a brief video explaining what A/B testing is, or revisit the interactive video in Unit 1.

2.1State your null and alternative hypotheses for the A/B testing research project, in the spaces provided.

Null Hypothesis (H₀)
Alternative hypothesis (H_A)
2.2Figure 1 and Figure 2 display the distributions for the for the old website and the new website, respectively. The distribution of the data can be assessed by plotting the observations using histograms. The data is grouped into categories, or bins, to smooth the data and display the number of cases in each bin. When generating histograms in Excel, you can specify the bins. If the bins are not provided, Excel generates the bins automatically.

Referring to the histograms of the old and new website, comment on the distribution of the two samples (old website and new website). State whether the samples are equally distributed, or if the samples are positively or negatively skewed. Also include a brief explanation of how the graphs differ from one another, and what this may imply. Pay attention to the scales of the graphs.Your answer may not exceed the word limit.

Figure 1:Histogram of the distribution of the average revenue for the old website.

Figure 2: Histogram of the distribution of the average revenue for the newwebsite.

2.3 Using a 0.05 alpha level, an F-test has been conducted to check if the two samples have equal or unequal variances. Excel returns the following table:

What conclusions can be drawn from the results of the F-test, and what are the implications of these results? Justify your answer by referring to the relevant values in the table above. Your answer may not exceed the word limit.

2.4A t-test has been conducted to determine whether the average revenue per site visitor has increased by the target of $200.00. Based on your answer in Question 2.3, do you think atwo-sample t-test with equal variance or the two-sample t-test with unequal variance is appropriate? State your choice with your justification.Your answer may not exceed the word limit.

Start writing here:

2.5After applying thet-tests in Excel, the following tables are produced:

What can you conclude about the new version of the Sonic Selection website, and which version of the website would you suggest Sonic Selection use? Justify your answer by referring to the relevant values in the table above. Be sure to explicitly state how you reached your conclusion based on the interpretation of the relevant statistical values. In your concluding statement, refer back to your hypotheses, and state whether the null hypothesis can be accepted or rejected. Your answer may not exceed the word limit.

Get Solved Answers for the Above Questions

Answer 1.1: Performance metrics are highly important for an organisation as they help them in understanding their standing in the industry. In the given case scenario, the performance of Sonic Selection is well below the benchmark in terms of eCommerce conversion rate, and in this respect they are required to consider a number of factors in addition to industry benchmarks in setting up their performance metrics. These factors are…

Get Completed Solution

The above questions are solved correctly by the statistic experts of assignmenthelp.co.za. Ask for complete solution from experts or order them to write my essay for me….