The Case of The California Consumer Privacy Act (CCPA)

Assignment Task

Introduction

You work for a regional online computer parts retailer ’ComVille’ in Fresno, Califor- nia, and are responsible for the technical infrastructure. From January 1 st , 2023 the California Consumer Privacy Act (CCPA) has become effective and you now realize that it requires a "Do not sell" opt-out option for all customers.

Since you have a background in privacy, you want to go above and beyond this requirement by showing customers a 90-second-long video that explains which data your company collects, how it is used, and under which circumstances you transmit them to third parties

You go to the CEO of the company and pitch what you want to do. However, the CEO isn’t convinced about your plan and tells you that (a) she would rather only implement the new law as minimally as required, and (b) you may only change the checkout procedure if you can demonstrate that it does not affect the sales. Since the CEO attended a class in statistics in college, she asks you for a detailed statistical report by March 22nd , 2023, 09:59 CEST, to check if your proposed strategy affects sales.

In order to eliminate the concerns of the CEO, you conduct a limited comparative test for one week with three conditions:

(A) current checkout-procedure without any privacy related options

(B) "Do not sell" opt-out possibility as required by CCPA

(C) your 90 seconds video explanation with an opt-in at the end

1. Parse and Prepare the log Files

Extract the following information from the three log files and the inventory list:

1. The number of aborted checkout procedures

2. The amount of successful checkout procedure

3. The amount of money spent on each successful checkout procedure

2. Analyze the Extracted Information

You may use Python or R to solve the tasks in this exercise were applicable. For each statistical test you run you should

(a) explicitly state H0, and

(b) list all of the results (including the non-significant ones).

3. Describe the distributions of money spent by the customers

(a) Calculate the mean and the standard deviation of the money spent in successful checkout procedures for all three log files.

(b) Check each of the three distributions for normality and homogeneity of variances.

(c) Explain what each of your results means in simple terms for the report.

4. Effect on the amount of money spent in each successful checkout procedure

(a) Use a parametric test to find out if there is a global effect on the money spent in each checkout procedure.

(b) In case of a global effect, run a post-hoc analysis to find out which con- ditions show an effect.

(c) Write a short explanation for the CEO that describes why you chose these tests and what the results mean for the future privacy options on the online shop.

5. Argue which kind of additional data and corresponding statistical tests could provide evidence that your preferred option (C - video explanation with opt-in) trumps the other two.

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