Assignment 1
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School
University of South Carolina *
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Course
352
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
Pages
6
Uploaded by CommodoreDangerGull34
Assignment 1: – A/B Testing
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Q1: Please review the Rocket Fuel case along with our discussion in the class and answer the
following questions. (25 Points)
The independent variable of this campaign is whether it is effective.
Q1a: What is the independent variable in the experiment described in the Rocket Fuel case? (7
Points)
The independent variable of this campaign is whether it is effective.
Q1b: What type of data (nominal, ordinal, interval, ratio) is the independent variable? (5 Points)
The independent variable uses nominal data
Q1c: What is the dependent variable in the experiment? (7 Points)
The dependent variable of this experiment is Taskbella’s ROI.
Q1d: What type of data (nominal, ordinal, interval, ratio) is the dependent variable? (6 Points)
The dependent variable uses ratio data.
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. (25 Points)
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? (5
Points)
A. Chi-Square Test
B. t-Test
Q2b: What is the test formula of the correct statistical test? (5 Points)
1
𝑋
2
= ∑
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0
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)
2
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Q2c: Please report the test value based on your computation. (5 Points)
(23104/22930.28)/22930.28)^2
+
(550154/550327.72)/550327.72)^2
+
(420/593.719)/593.719)^2
+
(14423/14249.28)/14249.28)^2= .00000142654
= 54.318
𝑋
2
Q2d: Is the test result statistically significant? Why? (5 Points)
Yes, the test is significant because it is less than the p-value 3.8 which means that we do not
reject the data.
Q2e: Was the advertising campaign effective? (5 Points)
Due to the test being significant, there is an increase in ROI meaning the campaign was
effective.
Q3: In A/B testing and other field experiments, it is important to design the right sample size. (25
Points)
Q3a: If Rocket Fuel had reduced the size of the existing control group by 50%, do you see any
potential issues? _________. (3 Points) If your answer is yes, describe the potential issue(s) in no
more than 30 words. (5 Points)
Yes, if they decrease the control group the sample size may be too small to detect a lift from the
group.
2
Q3b: If Rocket Fuel had increased the size of the existing control group by 50%, do you see any
potential issues? _________. (3 Points) If your answer is yes, describe the potential issue(s) in no
more than 30 words. (5 Points)
No, a larger sample size is better.
Q3c: If Rocket Fuel had run the trial campaign from November 2015 to December 2015, do you
see any potential issues? _________. (3 Points) If your answer is yes, describe the potential
issue(s) in no more than 50 words. (6 Points)
Yes, two months is not enough time to accurately measure the amount of reach the ad campaign
achieved.
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. (25 Points)
3
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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? (5 Points)
4
The independent variable would be the different color choices.
Q4b: What type of data (nominal, ordinal, interval, ratio) is the independent variable? (5 Points)
The independent variable would use nominal data.
Q4c: What is the dependent variable in this A/B testing? (5 Points)
The dependent variable would be the purchasing of the handbag
Q4d: What type of data (nominal, ordinal, interval, ratio) is the dependent variable? (5 Points)
The dependent variable would use ordinal data
Q4e: What is the hypothesis tested in this A/B testing? (5 Points)
The hypothesis being tested is whether a different color of handbags is related to the purchase of
one of the bags.
5
6
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