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A/B Test for Onboarding CTA

Medium
Statistics & ProbabilityConfidence IntervalsExperimentationA/B TestingAsked 5 times

Problem

Business Context

PulseBoard, a B2B analytics SaaS product, tested a new onboarding call-to-action intended to get more new signups to connect their first data source. Product leadership wants to know whether the experiment shows a real improvement and whether the lift is large enough to justify rollout.

Problem Statement

You led this product experiment and now need to analyze the result. Determine whether the new onboarding CTA improved 7-day activation rate relative to the existing experience.

Given Data

GroupUsersActivated within 7 daysActivation Rate
Control (old CTA)18,4207,18439.00%
Treatment (new CTA)18,1057,43041.04%

Additional test settings:

ParameterValue
Significance level0.05
Test typeTwo-sided
Experiment duration21 days

Requirements

  1. State the null and alternative hypotheses.
  2. Compute the sample activation rates and the absolute lift.
  3. Calculate the pooled proportion and standard error for a two-proportion z-test.
  4. Compute the z-statistic and p-value.
  5. Construct a 95% confidence interval for the difference in activation rates.
  6. Decide whether to roll out the new CTA, using both statistical and practical significance.

Assumptions

  • Users were randomly assigned at signup.
  • Each signup appears once in the analysis.
  • No major traffic-source mix shift occurred during the 21-day test.
  • Activation is binary: a user either connected a data source within 7 days or did not.

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