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Null and alternative hypotheses.

Drugstore.com was the first e-commerce company to offer Internet drugstore retailing. Drugstore.com customers were provided the opportunity to buy health, beauty, personal care, wellness, and pharmaceutical replenishment products over the Internet. At the end of 10 months of operation, the company reported that 44% of orders were from repeat customers (Drugstore.com Annual Report, January 2, 2000). Assume that Drugstore.com will use a sample of customer orders each quarter to determine whether the proportion of orders from repeat customers changed from the initial p =.44.

a. Formulate the null and alternative hypotheses.
b. During the first quarter a sample of 500 orders showed 205 repeat customers. Determine the p-value. Use &#945;=.05. Explain your conclusion.
c. During the second quarter a sample of 500 orders showed 245 repeat customers. Determine the p-value Use &#945;=.05. Explain your conclusion.

Solution Summary

Word file contains formulation of null and alternative hypotheses and calculation of p-value.

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