In an AB test, version X has a conversion rate of 3% and version Y has 4%. By what percentage does Y exceed X?

Study for the ATandT Information Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Multiple Choice

In an AB test, version X has a conversion rate of 3% and version Y has 4%. By what percentage does Y exceed X?

Explanation:
When measuring how much one rate is higher than another, use the relative increase: how big the change is compared to the original rate. Y goes from 3% to 4%, so the change is 1 percentage point. To see how large that is relative to X, divide that change by X: 1% ÷ 3% = 1/3 ≈ 0.3333. Convert to a percentage: 33.333...%. Rounding to two decimals gives 33.33%, which is why that option is correct. The 3.33% and 34% options don’t reflect that relative increase, and 33.3% is a rounding choice with one fewer decimal.

When measuring how much one rate is higher than another, use the relative increase: how big the change is compared to the original rate. Y goes from 3% to 4%, so the change is 1 percentage point. To see how large that is relative to X, divide that change by X: 1% ÷ 3% = 1/3 ≈ 0.3333. Convert to a percentage: 33.333...%. Rounding to two decimals gives 33.33%, which is why that option is correct. The 3.33% and 34% options don’t reflect that relative increase, and 33.3% is a rounding choice with one fewer decimal.

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