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PAD 622 Deleware University Budget Forecasts For 2021 Memorandum

PAD 622 Deleware University Budget Forecasts For 2021 Memorandum

Question Description

I’m working on a marketing exercise and need support to help me study.

Activity – To better assess your willingness to pay for advertising on others’ websites, you want to learn the mean profit per visit for all visits to your website. To accomplish this, you have collected a random sample of 4,738 visits to your website over the past six months. This sample includes information on visit duration and profits. The data are contained in WebProfits.xlsx (See the attached). Using the data in WebProfits.xlsx:

1. Build a 99% confidence interval for the mean profit per visit for all of your visitors.
2. Let the null hypothesis be that the mean profit per visit for all of your visitors is $11.50.
3. Calculate the corresponding t-stat for this null hypothesis.
4. Calculate the corresponding p-value for this null hypothesis.
5. With a strength of 95%, decide whether or not to reject this null hypothesis.
6. Detail the reasoning behind your decision.


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