A/B testing and Hypothesis Test - Clarification: Which Statistical Test to Run

app_pivot['Percent with Application'] = app_pivot.Application/app_pivot.Total
print(app_pivot.head())

is_application ab_test_group  Application  No Application  Total  \
0                          A          250            2254   2504   
1                          B          325            2175   2500   

is_application  Percent with Application  
0                                0.09984  
1                                0.13000  

The question asked from the capstone project MuscleHub A/B is:
“It looks like more people from Group B turned in an application. Why might that be? We need to know if this difference is statistically significant. Choose a hypothesis tests.”

My question is:
The correct test to choose is a chi-square test. However, the claim being tested based on the wording in the question above is ‘Are more people from Group B likely to turn in their application than Group A?’ . This would seems to mean I include 3 categories (Group B, Group A, is_application). So why would we include another group ‘No Application’ as part of our chi-square test? Because that is what the correct answer includes: Group A, Group B, is_application, No Application for the chi-square test.

I am trying to understand the implied logic here and how this can be translated into a standard when doing similar analysis moving forward.

Ok I am closing this question because I figured out the answer; has to do with sample space.

This topic was automatically closed 41 days after the last reply. New replies are no longer allowed.