Implementing A/B test analysis in R

We’re going to take a closer look at how A/B testing plays out in a car dealership, examining the effects of introducing a new sales strategy on monthly sales. Our case study will craft synthetic data to mirror the intricate dynamics of actual sales settings, incorporating elements such as the type of sales strategy employed (A versus B), the experience level of the sales team, various customer demographics, and the financing options on offer. The aim here is straightforward: we want to figure out if the novel sales strategy (B) can truly surpass the performance of the conventional method (A) in boosting sales figures.

Step 1 – Generating synthetic data

We’ll begin by creating a synthetic dataset representing two groups: one that employs the traditional sales strategy (A) and another that uses the new sales strategy (B). Other variables will include salesperson experience (years), customer age, customer income, whether...