Q) The data science team regress the purchase and revenue on the price discount. The regression results are as follows (Table 1 and Table 2). Interpret the results?

Other than the mattresses, Endy also manufacture pillows. Its Memory Foam Pillow (see Figure 2) has bamboo charcoal infused memory foam to keep consumers cool all night long and provide support for all types of sleepers. To test which price for a standard pillow is optimal, the firm conducted the following A/B test. The firm sends emails to 6,000 of its existing consumers, who are randomly assigned to a control condition and a treatment condition with equal probabilities. Consumers in the control group receive 10% off, its standard sitewide promotion. Consumers in the treatment condition receive 20% off, i.e., they will see a discounted price of $100 instead of $112.5. The data science team tracks the purchase rate (=1 if the consumer makes a purchase, =0 otherwise) and revenue ($ value of the total spending on the pillow for that consumer, $0 for no-purchase) of each consumer for 2 weeks after the email campaign, by when the price discount expires.

   

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SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total 0.128334 0.01647 0.016306 59.92894 6000 df 1 5998 5999 SS MS F 360722.5 360722.5 100.4385 21541682 3591.477 21902404 Standard Significance F 1.87E-23 050/ Upper 0500 SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total 0.128334 0.01647 0.016306 59.92894 6000 df 1 5998 5999 SS MS F 360722.5 360722.5 100.4385 21541682 3591.477 21902404 Standard Significance F 1.87E-23 050/ Upper 0500