A/B Testing Demonstration in Hypothesis Testing

Let’s now learn from Ankit Jain about a process that is widely used in digital and online companies — A/B testing. A/B testing is a direct industry application of the two-sample proportion test sample you have just studied. 

While developing an e-commerce website, there could be different opinions about the choices of various elements, such as the shape of buttons, the text on the call-to-action buttons, the colour of various UI elements, the copy on the website, or numerous other such things.

Often, the choice of these elements is very subjective and is difficult to predict which option would perform better. To resolve such conflicts, you can use A/B testing. A/B testing provides a way for you to test two different versions of the same element and see which one performs better. You can read more about A/B testing from this link. 

You can see a few more case studies and applications of A/B testing in the real world here.

The two-sample proportion test is used when you want to compare the proportions of two different samples. Let’s now see how A/B testing is entirely based on the two-sample proportion test, and go through an Excel demonstration of A/B testing with Deepak.

You can use various other tools also to conduct A/B testing, like R, Optimizely etc.