Corveta Motors: The Test Says Ship. Should You?

Product Management
medium35 min0 submissions
Google
Scenario

Corveta Motors ran an experiment on its automotive product in Europe.

The new checkout flow was tested against control with 17,661 users per arm over 18 days. Control converted at 7.4%; the variant converted 4.1% relatively higher. The team reports the result as significant at p < 0.05.

Two details sit further down the document. The team tested 6 variants against the same control, and checked results daily, calling the test when it crossed the threshold. A guardrail metric — refund rate — rose by 2.9 percentage points, which was reported as "not significant".

The PM wants to ship on Monday.

Supporting data

design

run days
18
stopping rule
checked daily, stopped when p < 0.05
users per arm
17661
variants against one control
6

results

absolute lift pts
0.3
relative lift pct
4.1
control conversion pct
7.4

guardrails

reported as
not significant
refund rate change pts
2.9
Your task

Advise the PM. Your answer should provide:

  1. Analysis — whether this result supports the conclusion, given the sample and how the test was run.
  2. Risks — the specific ways this readout could be wrong.
  3. Recommendation — ship, iterate, or re-run, with what you would require.

State any assumptions you make.

Ready to move forward? Up next: Northwind Energy: Plenty of Demand, Nothing to BuyNext question
How you'll be graded

80 points, 60% to pass.

  • recommendation15
  • market analysis15
  • risk assessment25
  • financial analysis25
Hint
Reveal suggested structure

Check power, then the stopping rule, then multiple comparisons, then guardrails. A p-value from a peeked test is not a p-value.