All examples for Confidence Interval Calculator & Interpreter

Checkout System Time Reduction Analysis

Comparing checkout times between old and new systems using Welch's t-test for difference in means. Shows 95% CI for time reduction with effect size (Cohen's d), statistical significance testing, and business impact calculations for deployment decision.

Input

What you provide to the skill

New checkout (n=180, mean=4.2 min, SD=1.8) vs old (n=165, mean=5.1 min, SD=2.1). Calculate 95% CI for time difference.

Output

What the skill generates for you

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CHECKOUT TIME REDUCTION ANALYSIS

Old Checkout System:
• Sample size: 165
• Mean time: 5.10 minutes
• Standard deviation: 2.10 minutes

New Checkout System:
• Sample size: 180
• Mean time: 4.20 minutes
• Standard deviation: 1.80 minutes

Time Reduction (Old - New):
• Point estimate: 0.90 minutes
• Standard error: 0.2115 minutes
95% Confidence Interval: (0.48, 1.32) minutes

Statistical Significance Test:
• t-statistic: 4.256
• Degrees of freedom: 324.5
• P-value: 0.000027
• Cohen’s d (effect size): 0.462

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INTERPRETATION

The new checkout system reduces checkout time by an average of 0.90 minutes compared to the old system.

95% Confidence Interval: (0.48, 1.32) minutes

We are 95% confident that the true average time reduction for all customers falls between 0.48 and 1.32 minutes.

Statistical Significance:
• The difference is highly statistically significant (p < 0.001)

Effect Size:
• Cohen’s d = 0.462 (small effect)

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BUSINESS IMPLICATIONS

Time Reduction: 0.90 minutes (17.6% improvement)
• The confidence interval does not include zero, confirming a real reduction

Practical Impact (assuming 1,000 daily customers):
• Daily time saved: 900 minutes (15.0 hours)
• Weekly time saved: 105 hours
• Annual time saved: 5,475 hours (684 work days)

Worst-Case Scenario (lower CI bound: 0.48 min):
• Even at the conservative estimate, customers save 0.48 minutes each
• Daily impact: 8.1 hours saved

Best-Case Scenario (upper CI bound: 1.32 min):
• Potential maximum benefit is 1.32 minutes per customer
• Daily impact: 21.9 hours saved

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RECOMMENDATION

The new checkout system demonstrates a statistically significant and practically meaningful reduction in checkout time. The small effect size (d = 0.46) combined with the narrow confidence interval indicates a reliable improvement.

✓ RECOMMENDATION: Deploy the new checkout system

Key Benefits:
• Proven time savings of 0.90 minutes per transaction
• Improved customer experience through faster checkout
• Increased capacity to serve more customers
• Statistical confidence in the improvement (p < 0.001)

Next Steps:

  1. Roll out new system to all customers
  2. Monitor checkout times to validate continued performance
  3. Track customer satisfaction metrics alongside time savings
  4. Quantify revenue impact from reduced cart abandonment

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