1. Lighthouse

Level 6 · Boss: plan the banner test

The request

From Jordan Reyes, Head of Marketing

“Next year we want to test a new homepage banner against the current one, and we'd call it a win at a 10% lift in conversion. Can you tell me how many visitors we need and how long the test has to run? I was hoping for two weeks.”

Your goal

Step 1 of 3. Set result to a dict with "baseline", the 2025 conversion rate of all sessions rounded to 4 decimals, and "daily_sessions", the number of 2025 sessions divided by 365, rounded to 1 decimal.

  • Use the web_sessions DataFramenot done yet
  • Store a dict in resultnot done yet

Step 1 · your code

Python

Loading the editor…

    ResultPreview of web_sessions · press Run to see yours
    Preview of web_sessions
    session_idcustomer_idstarted_atdevicesource
    1NaN2023-01-01 23:02:24mobilepaid
    2182023-01-01 15:07:49desktoppaid
    3NaN2023-01-01 16:55:46desktopdirect
    4NaN2023-01-01 12:43:28mobileorganic

    Mote checks your result

    Press Run. Each row that matches the goal becomes a firefly in your lantern.

    Step 2 · your code

    Python

    Loading the editor…

      ResultPreview of web_sessions · press Run to see yours
      Preview of web_sessions
      session_idcustomer_idstarted_atdevicesource
      1NaN2023-01-01 23:02:24mobilepaid
      2182023-01-01 15:07:49desktoppaid
      3NaN2023-01-01 16:55:46desktopdirect
      4NaN2023-01-01 12:43:28mobileorganic

      Mote checks your result

      Press Run. Each row that matches the goal becomes a firefly in your lantern.

      Step 3 · your code

      Python

      Loading the editor…

        ResultPreview of web_sessions · press Run to see yours
        Preview of web_sessions
        session_idcustomer_idstarted_atdevicesource
        1NaN2023-01-01 23:02:24mobilepaid
        2182023-01-01 15:07:49desktoppaid
        3NaN2023-01-01 16:55:46desktopdirect
        4NaN2023-01-01 12:43:28mobileorganic

        Mote checks your result

        Press Run. Each row that matches the goal becomes a firefly in your lantern.

        DataFrames

        Loaded for you as pandas DataFrames, plus pd and np.

        web_sessions40,000 rows · 7 columns
        • session_idinteger
        • customer_idinteger
        • started_attimestamp
        • devicevarchar
        • sourcevarchar
        • pages_viewedinteger
        • convertedboolean
        First 5 rows of web_sessions
        session_idcustomer_idstarted_atdevicesourcepages_viewedconverted
        1NaN2023-01-01 23:02:24mobilepaid1false
        2182023-01-01 15:07:49desktoppaid1false
        3NaN2023-01-01 16:55:46desktopdirect7false
        4NaN2023-01-01 12:43:28mobileorganic3false
        5NaN2023-01-01 13:06:21mobilesocial2false
        customers2,018 rows · 9 columns
        • customer_idinteger
        • first_namevarchar
        • last_namevarchar
        • emailvarchar
        • cityvarchar
        • statevarchar
        • signup_datedate
        • segmentvarchar
        • referral_sourcevarchar
        First 5 rows of customers
        customer_idfirst_namelast_nameemailcitystatesignup_datesegmentreferral_source
        1OwenHudsonowen.hudson@icloud.comSan FranciscoCA2022-06-02consumersearch
        2DouglasMendozadmendoza69@gmail.comAtlantaGA2022-06-02consumerNaN
        3HenryBrookshbrooks@lakesidecafe.comLos AngelesCA2022-06-04businessNaN
        4BrianGrahambgraham@bluecedarhomes.comSeattleWA2022-06-06businesspinterest
        5KyleJimenezkjimenez27@yahoo.comIndianapolisIN2022-06-07consumerNaN
        products120 rows · 8 columns
        • product_idinteger
        • namevarchar
        • categoryvarchar
        • subcategoryvarchar
        • unit_pricedecimal
        • unit_costdecimal
        • launched_ondate
        • is_activeboolean
        First 5 rows of products
        product_idnamecategorysubcategoryunit_priceunit_costlaunched_onis_active
        101Vale Velvet LoveseatFurnitureSofas1659.00NaN2023-09-11true
        102Alder Oak Coffee TableFurnitureTables919.00503.502024-05-16true
        103Orchard Rattan Dining ChairFurnitureChairs789.00429.872023-05-27true
        104Upland Oak BookcaseFurnitureStorage429.00214.702022-12-20true
        105Avery Leather Bed FrameFurnitureBeds449.00232.702021-08-31true
        orders12,000 rows · 7 columns
        • order_idinteger
        • customer_idinteger
        • order_datetimestamp
        • statusvarchar
        • channelvarchar
        • shipping_feedecimal
        • coupon_codevarchar
        First 5 rows of orders
        order_idcustomer_idorder_datestatuschannelshipping_feecoupon_code
        10011252023-01-01 20:51:19completedweb0.00NaN
        10021562023-01-02 07:58:46completedweb0.00NaN
        1003222023-01-02 10:25:27completedmarketplace4.99WELCOME10
        1004482023-01-02 11:21:51completedmarketplace4.99WELCOME10
        1005822023-01-02 11:43:36completedweb0.00WELCOME10
        order_items30,338 rows · 6 columns
        • order_item_idinteger
        • order_idinteger
        • product_idinteger
        • quantityinteger
        • unit_pricedecimal
        • discount_pctdecimal
        First 5 rows of order_items
        order_item_idorder_idproduct_idquantityunit_pricediscount_pct
        11001121931.990.00
        21001154311.990.00
        31002154411.990.00
        410021941149.000.00
        51002193219.990.00
        returns1,673 rows · 5 columns
        • return_idinteger
        • order_item_idinteger
        • returned_ondate
        • reasonvarchar
        • refund_amountdecimal
        First 5 rows of returns
        return_idorder_item_idreturned_onreasonrefund_amount
        1142023-01-10damaged83.69
        2422023-01-10wrong_item19.99
        31052023-01-14wrong_item10.99
        4242023-01-16changed_mind26.99
        51262023-01-16late20.99
        employees60 rows · 8 columns
        • employee_idinteger
        • first_namevarchar
        • last_namevarchar
        • departmentvarchar
        • titlevarchar
        • manager_idinteger
        • hire_datedate
        • salaryinteger
        First 5 rows of employees
        employee_idfirst_namelast_namedepartmenttitlemanager_idhire_datesalary
        1CatherineHaleExecutiveChief Executive OfficerNaN2016-03-01285000
        2RobertKimExecutiveChief Operating Officer12017-01-09235000
        3MeganCollinsSalesHead of Sales12018-04-16172000
        4ChloeGutierrezSalesAccount Executive32020-01-2172000
        5FrankBellSalesAccount Executive32023-05-2173000
        marketing_spend3,276 rows · 3 columns
        • spend_datedate
        • channelvarchar
        • amountdecimal
        First 5 rows of marketing_spend
        spend_datechannelamount
        2023-01-01paid492.99
        2023-01-01email37.38
        2023-01-01social200.53
        2023-01-02paid709.13
        2023-01-02email64.13

        The lesson

        Plan before you launch

        Every A/B test needs three numbers decided before it starts: the baseline rate (how the current version converts), the smallest lift worth detecting (the minimum detectable effect), and the sample size that gives a fair chance of seeing that lift if it is real. Skip this and you either stop too early (the peeking trap) or run a test that could never have found anything.

        Power and alpha

        Two error rates go into the plan:

        • alpha = 0.05: the false-positive rate you accept when there is no real effect.
        • power = 0.80: the chance of detecting the lift when it is real. The other 20% is a false negative: a real improvement the test misses.

        Each becomes a z-value from the normal curve: NormalDist().inv_cdf(0.975) ≈ 1.96 for a two-sided alpha of 0.05, and NormalDist().inv_cdf(0.80) ≈ 0.84 for 80% power.

        The sample size formula

        For two conversion rates p0 (control) and p1 (the rate you hope to see), the sessions needed per arm are:

        n = (z_alpha + z_beta) ** 2 * (p0 * (1 - p0) + p1 * (1 - p1)) / (p1 - p0) ** 2

        The gap p1 − p0 is squared in the denominator. That is the whole story of A/B testing on small sites: low conversion rates make the gap tiny, and a tiny gap squared makes n enormous.

        What the store can afford

        With 2025’s 44.5 sessions a day and a 3.08% baseline, here is what different target lifts cost:

        lift to detect sessions per arm days with all traffic
        10% 51,752 2,329
        20% 13,530 609
        30% 6,275 283
        50% 2,445 111

        Even a 50% lift needs almost four months. This is normal for a small store, and the reason big companies can test button colours and small ones cannot.

        Common mistakes

        • Relative versus absolute lift. “10% lift” on a 3% baseline means 3.3%, not 13%.
        • Per arm versus total. The formula gives one arm. The test needs both.
        • Planning on a busy month. November and December convert better and bring more traffic; a plan built on holiday numbers underestimates the time a spring test needs. Use a full year.
        • Lowering the bar to fit the calendar. Running two weeks “because that’s what we have” does not make a 10% lift detectable. It makes a false result likely, in either direction.

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