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Statistics & AB Testing Interview

Statistics & AB Testing Interview

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Different Parcel Effectiveness
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Let’s say you are in charge of shipments at Amazon.

There are two types of parcels you can ship packages in, say A and B. Packages delivered in parcel A are damaged during shipment with probability p, while packages delivered in parcel B are damaged with probability q.

What statistical test could you use to determine which parcel is better to use? What would the statistical test conclude if p=0.4 and q=0.6?

Note: Assume the values of p and q were obtained from data recorded from 200 shipments, half delivered with parcel A and half delivered with parcel B.

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