PORTFOLIO · EXPERIMENTATION
Compare two conversion rates, test statistical significance, and estimate the value of a wider rollout.
Email subject line test
Control subject line
Rate: 3.00%
New subject line
Rate: 3.50%
Inputs
rateA = conversionsA / visitorsA, rateB = conversionsB / visitorsB
pooledP = (conversionsA + conversionsB) / (visitorsA + visitorsB)
pooledSE = sqrt(pooledP × (1 − pooledP) × (1/visitorsA + 1/visitorsB))
z = (rateB − rateA) / pooledSE → two-tailed p-value from the standard normal CDF
unpooledSE = sqrt(rateA(1−rateA)/visitorsA + rateB(1−rateB)/visitorsB), used for the confidence interval, since the CI doesn't assume the two rates are equal
Minimum detectable effect: the smallest relative lift this sample size could catch with 80% power at the chosen confidence level. It flags an "inconclusive" result instead of mislabeling it "no effect."