A/B Test Design: Autoplay-Preview on the Home Page
Context: A streaming service is testing an autoplay-preview feature on the home page. Weekly cancellations are rare, with a baseline of 0.30% of active subscribers per week. You must design and analyze an online A/B test to detect an absolute change of 0.05 percentage points in the weekly cancellation rate within a 4-week experiment.
Provide the following:
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Unit of randomization and exposure eligibility rules, considering multi-profile households and shared devices.
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Primary and guardrail metrics with precise definitions (numerators, denominators, event windows). Include:
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Weekly cancellation rate (primary)
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App crashes (guardrail)
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Total weekly watch-hours (guardrail)
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Power analysis and sample-size calculation under binomial assumptions to detect a 0.05 percentage-point change, both:
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Without CUPED
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With CUPED using pre-experiment watch-hours as a covariate
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Choice of fixed-horizon vs. sequential testing (e.g., alpha-spending or group-sequential) and the exact decision boundary you would implement.
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A plan for rare-event stability (e.g., stratification, variant-balancing, winsorization for watch-time outliers).
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A monitoring dashboard specification (in Tableau or similar) showing daily guardrails, cumulative impact, and variant balance.
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How to interpret heterogeneous effects by country and device, and how this affects the global ship/no-ship decision.