Interview Query

Different Parcel Effectiveness

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Let’s say you are in charge of shipments at Amazon.

There are two types of parcels you can ship packages in, say AA and BB. Packages delivered in parcel AA are damaged during shipment with probability pp, while packages delivered in parcel BB are damaged with probability qq.

What statistical test could you use to determine which parcel is better to use? What would the statistical test conclude if p=0.4p=0.4 and q=0.6q=0.6?

Note: Assume the values of pp and qq were obtained from data recorded from 200 shipments, half delivered with parcel AA and half delivered with parcel BB.

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