Statistical analysis of A/B test run by an e-commerce website
An ecommerce website runs a A/B test to see if the new or treatment page leads to more conversion compared to the old page.
The null hypothesis is p_old >= p_new
Alternate hypothesis is p_new>p_old
where p_new and p_old are the proportion of conversions for the new and old page respectively.
We perform hypothesis testing and calculate the p values using two techniques
i) Bootstrapping: we simulated the null distribution under the assumption p_new=p_old and calculated the p value = 0.907. ii) ztest. We use proportions_ztest from stats module to confirm the p value.
In conclusion we find that with the large p value we cannot reject the null hypothesis.