Binomial Test Let’s imagine that we are analyzing the percentage of customers who make a purchase after visiting a website. 1000 customers visited the site this month, and 58 of them made a purchase. The marketing department reports that historical data suggests about 72 of every 1000 visitors make a purchase. Thus, they estimate that the probability of any particular customer making a purchase is 7.2%. We would like to know if this month’s number, 58 purchases, is significantly different from normal or a reasonable fluctuation due to random chance. In previous exercises, we collected samples of numerical information (eg. order price) and then used the mean and standard deviation of those samples to make comparisons. In contrast, we now have a sample where each unit (a visitor) falls into one of two discrete categories: “made a purchase” “did not make a purchase” Instead of comparing sample means, we want to compare the percent in the “made a purchase” category to some expectatio...
Comments
Post a Comment