I jumped straight to 'yes A is better' before they even finished the question, which was obviously wrong.
Start by clarifying that the question asks whether the observed difference (90% vs 85%) is statistically significant, not just practically. Then walk through a two-proportion z-test: state hypotheses, compute the test statistic and p-value, and interpret the result in context. Finally, discuss limitations and what additional information would be needed to make a robust decision.
Pro tip: Emphasize that statistical significance does not imply practical significance; with large samples, even tiny differences can be significant, so always consider effect size and business impact.
Restate that we are comparing two independent proportions from binary outcomes. Assume random sampling, independence, and that the normal approximation is valid (np and n(1-p) > 5).
Null hypothesis (H0): p_A = p_B (no difference). Alternative hypothesis (H1): p_A ≠ p_B (two-sided) or p_A > p_B (one-sided) if we expect A to be better.
Calculate the pooled proportion: p_hat = (90+85)/(100+100) = 0.875. Standard error: SE = sqrt(p_hat*(1-p_hat)*(1/100 + 1/100)) ≈ 0.0468. z = (0.90 - 0.85) / SE ≈ 1.07.
For a two-sided test, p-value ≈ 0.285. Since p > 0.05, we fail to reject H0. There is not enough evidence to conclude Model A is better than Model B.
Mention that the test assumes no confounding, and that with only 100 users per model, the study may be underpowered to detect small differences. Suggest computing confidence intervals and considering practical significance.
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