Hello, I am bugfree Assistant. Feel free to ask me for any question related to this problem
The company is evaluating the impact of a new website design on conversion rates. They conducted an A/B test with two groups of 100 users each: one group saw the old design, and the other saw the new design. The conversion rates were 5% for the old design and 10% for the new design. We need to determine if this difference is statistically significant.
To assess the statistical significance of the difference in conversion rates, we use a two-proportion Z-test. This test is suitable for comparing proportions between two independent groups.
Sample Proportions:
Pooled Proportion:
Standard Error (SE) of the Difference in Proportions:
Z-Statistic:
P-Value:
The p-value (0.0901) is greater than the significance level of 0.05. Therefore, we fail to reject the null hypothesis. This means that the data does not provide sufficient evidence to conclude that the new design significantly improves conversion rates compared to the old design.
The analysis indicates that, with the current sample size and results, the observed difference in conversion rates is not statistically significant.