A/B testing: given two test cases each with 50% customers, A: 1000 bookings and B 20% more bookings than A, cashback for A: 4 dollars per booking, redemption rate: 50% Cashback for B: 6 dollars per booking, redemption rate: 75% Commision per booking: 10 dollars per booking Calculate profit per day for A and B

Question

Accepted Answer

Calculate profit per day for A and B given A/B testing results and cashback details.

Calculate the profit for test case A by subtracting the commission and cashback from the total bookings.
Calculate the profit for test case B by considering the increased bookings and higher cashback.
Multiply the cashback by the redemption rate to get the effective cashback per booking.
Multiply the effective cashback by the number of bookings to get the total cashback.
Subtract the commission and total cashback from the total bookings to get the profit per day.

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