Intuitive Simulation of A/B Testing - Part 2

In this post, I would like to invite you to continue our intuitive exploration of A/B testing, as seen in the previous post.

Resuming what we saw, we were able to prove through simulations and intuition that there was a relationship between Website Version and Signup since we were able to elaborate a test with a Statistical Power of 79% that allowed us to reject the hypothesis that states otherwise with 95% confidence. In other words, we proved that behavior as bias as ours was found randomly, only 1.6% of the time.

Even though we were satisfied with the results, we still need to prove with a defined statistical confidence level that there was a higher-performing version. In practice, we need to prove our hypothesis that, on average, we should expect version F would win over any other version.

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