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Q: Perform an A/B test. What will your null hypothesis be? Comprehension: Suppose you work at an FMCG company that recently launched a new fabric

Q: Perform an A/B test. What will your null hypothesis be?

Comprehension:

Suppose you work at an FMCG company that recently launched a new fabric whitening product called 'Excalibur'. The marketing team has come up with the following two taglines:

Tagline A reads 'Purer than white'.

Tagline B reads 'Holy white'.

The initial consensus was that Tagline A is better than Tagline B. However, after a senior manager had challenged the consensus, it was decided that Tagline B would be tested to see if it performed better. Of the 20,000 products each with Tagline A and Tagline B, 1,158 and 1,201 were sold, respectively.

Now, you want to conduct an A/B test to verify whether this difference in sales is statistically significant or not.

Options:

  1. Sales with Tagline A Sales with Tagline B
  2. Sales with Tagline A = Sales with Tagline B
  3. Sales with Tagline A Sales with Tagline B
  4. Sales with Tagline A < Sales with Tagline B

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