Final answer:
Hit rate or conversion rate is a business metric indicating the number of prospects needed to make a sale. An internet marketing company measures this by surveying a sample of customers and calculating the necessary sample size to determine the proportion of ad clicks on smartphones with a 90% confidence level and 5% margin of error.
Step-by-step explanation:
The concept of hit rate, also referred to as conversion rate, is a crucial metric in business and marketing. It measures the efficiency of a sales process by indicating how many prospects or leads need to be approached to make one sale. For an internet marketing company aiming to determine the percentage of customers who click on ads on their smartphones, a sample size must be calculated for the statistical survey.
To achieve a 90 percent confidence level that the estimated proportion is within 5 percentage points of the true population proportion, the company should use a formula that requires the assumed sample proportion (p'), the desired confidence level, and the margin of error. With a presumed sample proportion of 0.50, the company can then calculate the necessary sample size to achieve the desired accuracy of the survey results.