Question: Problem 2 : Do consumers react to faster shipping times? Definitions Visit - an instance of a person coming to a website. ( A visitor

Problem 2: 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 A/B 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 (e.g. 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 75% of visitors to see version A and
25% 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 7th and 14th 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
6/4/20237,8237962,91028910.2%9.9%777
6/5/20235,6115413,0492629.6%8.6%482
6/6/20235,0925332,77528010.5%10.1%514
6/7/202316,4071,0013,2661916.1%5.8%960
6/8/20234,0724161,98018810.2%9.5%387
6/9/20232,8022681,5121299.6%8.5%239
6/10/20233,2773231,4081349.9%9.5%312
6/11/20238,1598082,7092589.9%9.5%777
6/12/20235,3315172,8022589.7%9.2%491
6/13/20235,2175422,72027210.4%10.0%522
6/14/202315,9221,0993,1192056.9%6.6%1046
6/15/20234,3604152,0911829.5%8.7%379
Totals 84,0737,25930,3412,6486,885.53
Mean 9.4%8.8%
Std. Dev 1.4%1.3%
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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