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1 11115722 MEX F 801.66 GRPB 5 2 11122053 USA M 599.41 GRPB 2 3 11128688 USA F 1610.13 GRPA 6 4 11130578 USA F

1 11115722 MEX F 801.66 GRPB 5
2 11122053 USA M 599.41 GRPB 2
3 11128688 USA F 1610.13 GRPA 6
4 11130578 USA F 1599.46 GRPA 3
5 11130759 ESP M 1837.40 GRPB 3
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7 11131381 GBR F 1927.14 GRPB 4
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31 11172690 USA F 1733.54 GRPB 3
32 11172970 BRA M 2449.70 GRPB 3
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34 11174686 MEX F 3996.56 GRPA 7
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48 11199766 ESP F 149.72 GRPA 1
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50 11205334 USA M 6102.80 GRPA 9
51 11207802 TUR F 229.34 GRPA 3
52 11209959 FRA F 573.11 GRPA 3
53 11212140 USA F 3403.26 GRPB 7
54 11213287 USA F 783.02 GRPA 7
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56 11215412 BRA F 426.89 GRPB 3
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70 11232570 GBR F 3570.95 GRPA 11
71 11235763 MEX F 345.72 GRPA 1
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80 11252669 BRA F 229.52 GRPA 2
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82 11253355 MEX M 619.10 GRPA 2
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87 11264431 BRA F 737.99 GRPA 1
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122 11328768 MEX M 437.10 GRPB 2
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Showing 1 to 24 of 45,883 entries, 6 total columns

Velo.com is a UK-based online retailer of bikes and biking equipment with customers around the world. The company's business model is to encourage extensive product customization: customers are able to configure bikes to their exact specifications from a wide selection of derailleurs, brakes, handlebars, seats, frames, wheels, etc.. About a year ago one of the company's business analysts, Sarah Swan, noticed that customers seemed to be dropping off during the checkout process, especially when attempting to purchase complicated and potentially expensive custom bikes. She observed that such customers often visited the website multiple times to configure their bikes, and expected to see a relatively lower nonpurchase rate for them, given their investment of time and effort. She was surprised to find that they actually had a higher nonpurchase rate compared to customers with fewer visits. She reviewed the checkout system carefully, doing process modeling to try to find the problem, which, unfortunately, was not totally obvious. There seemed to be a constellation of issues with the cart system. Customers were able to save the contents of their carts, but it appeared that sometimes, a revision to the cart caused all the items to be erased. These customers would have to start over, and, in frustration, some didn't. There appeared to be some other problems as well, but this was the main one she brought to the attention of her boss, the Director of Analytics. After lengthy discussions, the IT department at velo.com re-engineered the cart system and created a revised version of the website. However, the CTO, being skeptical that there was a problem with the original version, was reluctant to simply switch systems, and lobbied for an A/B test before committing to the new system. Given the high stakes, the experiment was carefully designed. After logging in, customers would be randomly assigned to either the original checkout system or the revised system. For every subsequent visit, customers would be presented with the same system. The experiment was run for one month. At the end of that month, Sarah had plenty of data to analyze. She needs to recommend definitively whether to switch systems. What should she recommend?

1-Plot the distribution of `spent` for the control (GRP A) and treatment (GRP B) groups using the facet function below. Comment on the best measure of central tendency. Do mean and standard deviation have much meaning in this distribution?

2- summary table with the n, mean, median, standard deviation of `spent` by group (i.e., present these statistics for GRP A and GRP B separately). Include also a calculation of the the proportion of non-purchases in each group. 3-s spending significantly different in the treatment (B) group? Comment also on the magnitude of the difference in spending between the two groups (in addition to statistical significance).

Use Bootstrapping. Hint: compare the medians. What is the null hypothesis for this comparison?

4- Is the proportion of nonpurchase statistically different in the treatment group? Compare the mean purchase rate is GRP A and GRP B. Comment also on the magnitude of the difference in purchase rate between the two groups (in addition to statistical significance).

What is the null hypothesis for this comparison?

5-course of action should Sarah recommend to the management at velo.com?

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