Questions 6-8 refer to the following information. levels.fyi…
Questions 6-8 refer to the following information. levels.fyi is a company that provides job seekers with compensation data. As people negotiate job offers from companies, they can use levels.fyi to see what other job seekers have gotten. For example, someone with a job offer from Meta to be a product manager can see what Meta product managers typically get in compensation. This service is free. levels.fyi also offers a paid negotiation coaching service which costs $1000. Only about 1% of their users actually pay for this service, and levels would like to increase this share. They ran an experiment offering a discounted price of $500 to a random subset of users. Given their prices and costs, levels.fyi determined that they would want to lower the price for everyone, if the lower price caused an increase in take-up of coaching of at least 0.04 on average. Some data from the experiment are in the table below: Group Sample size Coaching take-up average Coaching take-up standard deviation Control ($1000 price) 1,225 0.011 0.10 Treatment ($500 price) 1,225 0.020 0.17