Question: Problem 2 : Do consumers react to faster shipping times? Definitions Visit - an instance of a person coming to a website. ( A visitor
Problem : Do consumers react to faster shipping times?
Definitions
"Visit" an instance of a person coming to a website. A "visitor" is a person who conducts a visit on a website.
"Order" an instance of someone making a purchase.
"Conversion rate" the percentage of visits that turn into an order aka cvr
Notes about Split Testing aka AB testing
A website can be set to give different experiences to different people. In other words, the site
can be "split" into two versions A and B that have different characteristics eg layout, products, etc.
These different versions can then be shown to different visitors on a random basis.
For example, we could set our random number generator to aim for of visitors to see version A and
of visitors to see version B
Scenario
We would like to understand how consumers react to seeing different anticipated shipping times. Does showing
a faster shipping time result in more consumers choosing to hit the "buy" button?
A two week split test was set up where visitors were assigned to either an A group, or a B group,
and the number of visitors in each group was accurately recorded by day. The A group sees
a "Free two day shipping" badge. The B group sees our regular "Free shipping" badge.
The additional traffic on the th and th is due to some banner ads running on Weddings.com on those particular days.
A group B group A B
Visits Orders Visits Orders conversion rate conversion rate # of orders in B normalized to number of visits
Totals
Mean
Std Dev
Please show all your analysis, leave formulas in cells, and specify any assumptions you make.
Questions
A What is the overall conversion rate for the A group?
B What is the overall conversion rate for the B group?
C Which version of the shipping badge performs better?
D What more orders can you expect to get by using the version you answered in C above, vs the other version?
E What is a little strange about this data? Why is this happening?
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