Describe How E-Bags Used A/B Testing to Determine What Effect

question 46

Essay

Describe how E-bags used A/B testing to determine what effect adding stars or ratings to its site would have on its sales.

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Definitions:

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, leading to market stability.

Ineffective

Not producing the intended or desired effect.

Economic Cost

The total cost of choosing one action over another, including both direct costs and any lost opportunity costs.

Utility

The satisfaction or benefit derived from consuming goods and services.