# Assignment 1: – A/B Testing

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?

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?

1. Chi-Square Test
2. t-Test

Q2b: What is the test formula of the correct statistical test?

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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