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Given the results of the two hypothesis tests, would you reject or fail to reject your null hypotheses (assuming a 0.05 significance level)? What does

Given the results of the two hypothesis tests, would you reject or fail to reject your null hypotheses (assuming a 0.05 significance level)? What does your decision mean in the context of this problem? Would you proceed with changing the design of the shopping cart icon, or would you stay with the original design?

The table below summarizes the results of the two hypothesis tests for the new shopping cart design. The sample size is large (1.5 million observations), so we provide the results of the hypothesis tests rather than performing the analysis ourselves. These results are based on the following null and alternative hypotheses:

Ordered Product Sales (OPS)

  • H0H0: Average ordered product sales are equal for customers who see the old shopping cart and for those who see the new shopping cart (?control OPS=?treatment OPS)(?control OPS=?treatment OPS)
  • HaHa: Average ordered product sales are differentfor customers who see the old shopping cart and for those who see the new shopping cart (?control OPS??treatment OPS)(?control OPS??treatment OPS)

Total Units Ordered (Units)

  • H0H0: Average total units ordered are equal for customers who see the old shopping cart and for those who see the new shopping cart (?control units=?treatment units?control units=?treatment units)
  • HaHa: Average total units orderedaredifferentfor customers who see the old shopping cart and for those who see the new shopping cart (?controlunits??treatment units?controlunits??treatment units)

image text in transcribed
ORDERED PRODUCT SALES (OPS) CONTROL TREATMENT Mean 127.7358 128.1242 Variance 12,533.4069 12,620.1956 Observations 750,706 749,294 Hypothesized Mean Difference 0.0000 Mean Difference 0.3884 % Mean Difference 0.0030 P-value 0.0339 TOTAL UNITS ORDERED (UNITS) CONTROL TREATMENT Mean 5.0040 5.0154 Variance 8.5191 8.5407 Observations 750,706 749,294 Hypothesized Mean Difference 0.0000 Mean Difference 0.0114 % Mean Difference 0.0023 P-value 0.0169

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