Q1: Please review the Rocket Fuel case along with our discussion in the class and answer the following questions.
Q1a: What is the independent variable in the experiment described in the Rocket Fuel case?
Q1b: What type of data (nominal, ordinal, interval, ratio) is the independent variable?
Q1c: What is the dependent variable in the experiment?
Q1d: What type of data (nominal, ordinal, interval, ratio) is the dependent variable?
Q2: Was the advertising campaign effective? (i.e., did additional consumers convert because of the advertising campaign?). Answer each of the following questions below will lead you to the answer of this question.
Q2a: Based on the NOIR classification (or data type) of the independent variable and the dependent variable, which statistical test do you think fits the situation most appropriately?
Q2b: What is the test formula of the correct statistical test?
Q2c: Please report the test value based on your computation.
Q2d: Is the test result statistically significant? Why?
Q2e: Was the advertising campaign effective?
Q3: In A/B testing and other field experiments, it is important to design the right sample size.
Q3a: If Rocket Fuel had reduced the size of the existing control group by 50%, do you see any potential issues? _________. If your answer is yes, describe the potential issue(s) in no more than 30 words.
Q3b: If Rocket Fuel had increased the size of the existing control group by 50%, do you see any potential issues? _________. If your answer is yes, describe the potential issue(s) in no more than 30 words.
Q3c: If Rocket Fuel had run the trial campaign from November 2015 to December 2015, do you see any potential issues? _________. If your answer is yes, describe the potential issue(s) in no more than 50 words.
Q4: Assume that TaskaBella now would like to run another A/B testing. In this A/B testing, TaskaBella would like to figure out whether they should adjust the image of their advertisement campaign. Their current image is the following.
In the A/B testing, they want to know whether removing the three bags on the left of the image, as shown in the following image, will convert more people to purchase the handbag.
Q4a: What is the independent variable in this A/B testing?
Q4b: What type of data (nominal, ordinal, interval, ratio) is the independent variable?
Q4c: What is the dependent variable in this A/B testing?
Q4d: What type of data (nominal, ordinal, interval, ratio) is the dependent variable?
Q4e: What is the hypothesis tested in this A/B testing?
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