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Design an Email Experiment

EasyStatistics & Probability00:00
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Your question is Design an Email Experiment. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

Business Context

StreamCart, a grocery delivery app, wants to test whether a new promotional email increases 7-day purchase conversion. The marketing team needs an experiment design and a quick read on whether the pilot result justifies a broader rollout.

Problem Statement

You are asked to design the experiment and evaluate the pilot A/B test result. Assume the primary metric is whether a user makes at least one purchase within 7 days of receiving the email.

Given Data

GroupUsers AssignedPurchasers in 7 DaysConversion Rate
Control (current email)8,0006408.0%
Treatment (new email)8,2007389.0%

Additional design inputs:

ParameterValue
Baseline conversion rate8.0%
Minimum detectable effect1.0 percentage point
Significance level0.05
Desired power0.80
Test typeTwo-sided

Requirements

  1. Define the null and alternative hypotheses for the A/B test.
  2. Explain a sound experiment design: unit of randomization, primary metric, guardrail metrics, and key bias risks.
  3. Compute the observed treatment effect in percentage points.
  4. Run a two-proportion z-test using the pilot data.
  5. Construct a 95% confidence interval for the difference in conversion rates.
  6. Estimate the required sample size per group for detecting a 1.0 percentage point lift from an 8.0% baseline at 80% power.
  7. State whether the pilot result is statistically significant and whether you would recommend full rollout.

Assumptions

  • Users were randomly assigned at the user level.
  • Each user received at most one email during the test window.
  • Outcomes are independent across users.
  • No major deliverability issues or targeting changes occurred during the experiment.