Chapter 3, Problem 4CP

Heavenly Chocolates Website Transactions

Heavenly Chocolates manufactures and sells quality chocolate products at its plant and retail store located in Saratoga Springs, New York. Two years ago the company developed a website and began selling its products over the Internet. Website sales have exceeded the company’s expectations, and mangement is now considering stragegies to increase sales even further. To learn more about the website customers, a sample of 50 Heavenly Chocolate transactions was selected from the previous month’s sales. Data showing the day of the week each transaction was made, the type of browser the customer used, the time spent on the website, the number of website pages viewed, and the amount spent by each of the 50 customers are contained in the file named Shoppers. A portion of the data are shown in Table 3.12.

Heavenly Chocolates would like to use the sample data to determine if online shoppers who spend more time and view more pages also spend more money during their visit to the website. The company would also like to investigate the effect that the day of the week and the type of browser have on sales.

Managerial Report

Use the methods of descriptive statistics to learn about the customers who visit the Heavenly Chocolates website. Include the following in your report.

1. 1. Graphical and numerical summaries for the length of time the shopper spends on the website, the number of pages viewed, and the mean amount spent per transaction. Discuss what you learn about Heavenly Cholcolates’ online shoppers from these numerical summaries.
2. 2. Summarize the frequency, the total dollars spent, and the mean amount spent per transaction for each day of week. What observations can you make about Hevenly Chocolates’ business based on the day of the week? Discuss.
3. 3. Summarize the frequency, the total dollars spent, and the mean amount spent per transaction for each type of browser. What observations can you make about Heavenly Chocolate’s business based on the type of browser? Discuss.
4. 4. Develop a scatter diagram and compute the sample correlation coefficient to explore the relationship between the time spent on the website and the dollar amount spent. Use the horizontal axis for the time spent on the website. Discuss.
5. 5. Develop a scatter diagram and compute the sample correlation coefficient to explore the relationship between the the number of website pages viewed and the amount spent. Use the horizontal axis for the number of website pages viewed. Discuss.
6. 6. Develop a scatter diagram and compute the sample correlation coefficient to explore the relationship between the time spent on the website and the number of pages viewed. Use the horizontal axis to represent the number of pages viewed. Discuss.