Welcome to Conundrum 8! This week we will be investigating a theory about customer behavior.
You are given the Haiku Tshirts Orders dataset. The hypothesis in question is this: returning customers tend to buy more in orders after their first.
Can you build a Flow and create a chart that tests this hypothesis and proves it's truth or falsehood - for these customers at least?
Hint: Some customers have only one order while others may have up to nine orders.If you would like to share your results / chart with the community feel free to do so here either in the form of screenshots, a text based description, a project upload, or all three!
If you would like to upload your project please refer to Submission guidelines.
Hi Corey, can you give us a bit more info on what you mean by this hypothesis? I am inclined to interpret it as "first orders are of a smaller size than subsequent orders". Is that indeed what is meant?
Yes that is what we mean - I'll edit the post to make that a little more clear.
Thanks for pointing out the lack of clarity!
So I had a bit of doubt about the proper statistical way to test the hypothesis. What I ended up doing was to compare, per customer, the size of their first order with the average size of all subsequent orders. This gives me a difference variable, whose mean is not different from 0 according to a simple t-test. The differences are not normally distributed, but considering the large sample size I don't consider that a problem. The project is attached and you can find the t-test in the final dataset.
Hi!!! What a creative way to solve this conundrum! According to your t-test, the difference between the means of the two groups (size of first order vs. size of subsequent orders) is zero. Which would mean, on average, the customer's subsequent orders are not increasing in size. Great job!