RideNow wants to reactivate dormant riders with a new push notification. A rider is considered dormant if they have not taken a trip in the last 28 days.
Design and evaluate an A/B test to determine whether the new push notification increases 7-day reactivation rate versus the current notification. Use the data below to test for statistical significance, quantify uncertainty, and assess whether the experiment had enough power.
| Group | Eligible Dormant Riders | Reactivated Within 7 Days | Reactivation Rate |
|---|---|---|---|
| Control (current push) | 48,000 | 2,640 | 5.50% |
| Treatment (new push) | 48,000 | 3,024 | 6.30% |
Additional planning inputs:
| Parameter | Value |
|---|---|
| Significance level | 0.05 |
| Test type | One-tailed |
| Baseline reactivation rate | 5.50% |
| Minimum detectable effect | 0.60 percentage points |
| Desired power | 80% |
