When does my corner shop become statistically relevent?

  • Context: Undergrad 
  • Thread starter Thread starter WillQ
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SUMMARY

The discussion centers on calculating the "walk through rate" for a shop, defined as the percentage of passersby who enter the store. The key metric involves measuring two variables: X (the number of people walking past) and Y (the number of people entering). To determine a statistically relevant confidence level for this rate, participants suggest using a "confidence interval" for sampling from a binomial distribution, specifically referencing the binomial proportion confidence interval method.

PREREQUISITES
  • Understanding of basic statistics, particularly binomial distributions.
  • Familiarity with confidence intervals and their calculation.
  • Knowledge of sampling methods in statistical analysis.
  • Ability to interpret statistical metrics related to customer behavior.
NEXT STEPS
  • Research the calculation of binomial proportion confidence intervals.
  • Learn about standard deviation and its application in confidence level determination.
  • Explore statistical software tools for analyzing customer behavior data.
  • Study case studies on retail foot traffic analysis and conversion rates.
USEFUL FOR

Retail business owners, data analysts, and marketers interested in optimizing customer engagement and understanding foot traffic dynamics.

WillQ
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Hey all,

Here's a nice Wednesday afternoon brain test for you all (I've been pulling my hair out with this one, because I'm sure it's probably straightforward)

If I've got a shop, let's say, and I decide I want to work out how awesome my shop is at getting customers.

I want to work out my awesomeness fraction (let's call it "walk through rate").

I measure:

X, the amount of people that walk past in a given amount of time.

Y, the amount of people that walk past and decide to enter the shop in that given amount of time.

At what point can I say, with a fair level of accuracy, that "Z% of people who walk past my shop come inside"? Obviously I need to wait for a certain number of people to come in or walk past, but I can't work out how to calculate this confidence level... any help would be massively appreciated!

(I was thinking it'd have something to do with calculating the standard deviation, and measuring that as a percentage of the total... but I'm not sure...)
 
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