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Posted on Oct 21, 2024

Please help me in solving the question. Which test would be applied here. I am very confused Gillian Tans, CEO of Booking.com, and David Vismans,

Please help me in solving the question. Which test would be applied here. I am very confused

Gillian Tans, CEO of Booking.com, and David Vismans, Chief Product Officer, scratched their heads over an experiment that one of the companys managers was going to run. The test involved a new customer interface that had little resemblance with the companys hugely popular landing page, which was propelled it to the largest accommodation-booking platform in the world. The companys focus on optimizing customer experiences had remained unchanged since its early days. To figure out what customers found satisfying, its developers continuously tried out ideas to improve the consumers experiences. The simplest kind of a controlled experiment was an A/B test. Marketing team randomly assigned customers to two experiments to answer following questions:

1. Marketers in Booking.com believes the key Buy Now in the old version is very small (its size is 1 * 1), and it causes some wrong clicks that ultimately creates frustration for visitors. In the first version the website designers made the key bigger (1.5 * 1.5). In the second version they did not change the size, instead, they create bigger gaps between Buy Now key and other keys which were located beside it.

- Please state the null hypothesis and alternative hypothesis for each of these tests. (10 points)

- Which treatment was effective in reducing the wrong clicks? Explain (10 points)

- If we assume website designers are not able to consider both changes simultaneously, which treatment do you suggest being considered? (10 points)

2. Marketers in Booking.com believes their main revenue is coming from male customers. Ladies might check their website, but men tend to book more hotels.

- Please state the null hypothesis and alternative hypothesis for this assumption. (5 points)

- Test this assumption and let the managers know what you think. It is a true assumption or not? Why? (10 points)

image text in transcribed

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