Rocket Fuel Case – Question 1

1. What impact did the ad campaign have on the number of conversions, and if it changed
them, then by how much, in what direction, was the change statistically significant, and
what does that mean for interpreting the ad campaign’s success?
a. The ad campaign had a positive impact on the number of conversions. As seen in the
table below, the number of conversions (relative to its group total) increased by 1%.

Control Test Total Control Test Total

Did not purchase 23,104 550,154 573,258 Did not purchase 98% 97% 97%
Did purchase 420 14,423 14,843 Did purchase 2% 3% 3%
Total 23,524 564,577 588,101 Total 100% 100% 100%

b. The change in conversions was statistically significant. As seen in the attached excel
sheet exercise, the p-value is less than 0.05 and is therefore statistically significant.

Chi-square 54.31805159

p 0.0000000000002

c. In terms of what the statistical significance means for interpreting the ad campaign’s
success – the null hypothesis in this instance would be that the ad campaign will
have no effect on the consumer purchase behavior of the handbags. The low p-value
suggests that this null hypothesis is incorrect – or, that the ad campaign did have an
effect on the consumer purchase behavior of the handbags, i.e. the ad campaign was
a success.