In an AB test, version X has a conversion rate of 3% and version Y has 4%. By what percentage does Y exceed X?

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Multiple Choice

In an AB test, version X has a conversion rate of 3% and version Y has 4%. By what percentage does Y exceed X?

Explanation:
When measuring how much one rate is higher than another, use the relative increase: how big the change is compared to the original rate. Y goes from 3% to 4%, so the change is 1 percentage point. To see how large that is relative to X, divide that change by X: 1% ÷ 3% = 1/3 ≈ 0.3333. Convert to a percentage: 33.333...%. Rounding to two decimals gives 33.33%, which is why that option is correct. The 3.33% and 34% options don’t reflect that relative increase, and 33.3% is a rounding choice with one fewer decimal.

When measuring how much one rate is higher than another, use the relative increase: how big the change is compared to the original rate. Y goes from 3% to 4%, so the change is 1 percentage point. To see how large that is relative to X, divide that change by X: 1% ÷ 3% = 1/3 ≈ 0.3333. Convert to a percentage: 33.333...%. Rounding to two decimals gives 33.33%, which is why that option is correct. The 3.33% and 34% options don’t reflect that relative increase, and 33.3% is a rounding choice with one fewer decimal.

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