Online retailers want customers to trust their websites and


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.

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Accounting Basics: Online retailers want customers to trust their websites and
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