We ran an experiment in which we gave half of new users (chosen at random) the option to subscribe for a year instead of a month at a cost of $80. Make predictions for the results of the experiment using the following chart:

Try to make reasonable assumptions in coming up with answers and list the assumptions together with your answer.

Transcribed Image Text:

Metric Users in bucket Monthly plan subscribers Yearly plan subscribers Revenue per user after 13 months Refund rate (% users asking for refunds) Control (Only $10/month) 100,000 14,000 0 Test (Option between $10/month and $80/year) 100,000 Metric Users in bucket Monthly plan subscribers Yearly plan subscribers Revenue per user after 13 months Refund rate (% users asking for refunds) Control (Only $10/month) 100,000 14,000 0 Test (Option between $10/month and $80/year) 100,000

Answer rating: 100% (QA)

If the monthly plan costs 10 and the yearly plan costs 80 then the yearly plan is 8 times the monthly plan I would expect that the monthly plan would ... View the full answer