Question regarding the e-trust

Reference no: EM131008136

E-trust

Online retailers want customers to trust their websites and want to alleviate any concerns potential customers may have about privacy and security. In a study investigating the factors that affect e-trust, participants were randomly assigned to carry out online transactions

Source	DF	Sum of Squares	Mean Square	F-ratio	P-value
ISO 9000	1	2654.4	2654.41	5.78	0.022
Size	1	0.2	0.18	0.004	0.984
Interaction	1	1505.5	1505.49	3.28	0.079
Error	36	16545.9	459.61
Total	39	20705.9

a) Is this an experiment or an observational study?

b) State the hypotheses.

c) Given the small P-value associated with the ISO 9000 factor and that the mean annual return for the companies with ISO 9000 is 30.7% compared to 14.4% for those without, the auditors state that achieving ISO 9000 certifi- cation results in higher stock prices. Do you agree with their statement? Explain.

Reference no: EM131008136

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