When to use it
This is the standard test for comparing two rates — most commonly an A/B test where you compare the conversion rate of version A against version B. Each observation is a yes/no outcome and each subject belongs to exactly one group.
Assumptions
- Independent groups and observations — no subject in both groups, no repeated measurement.
- Large counts — at least ~10 successes and ~10 failures per group, so the normal approximation holds.
- Random assignment or sampling.
Worked example
Version A converts 120 of 2,000 visitors (6.0%); version B converts 150 of 2,000 (7.5%). The z-test returns z ≈ 2.0 and p ≈ 0.046 — a statistically significant lift at α = 0.05, though modest. Enter your counts above for the exact result.
Common mistakes
- Entering percentages instead of counts.
- Small counts — with few successes, use Fisher's exact test.
- Peeking — repeatedly checking an A/B test and stopping at significance inflates false positives; fix the sample size in advance with the sample-size calculator, or use a sequential A/B test if you need to monitor results continuously.
- Ignoring the effect size — report the absolute difference and its confidence interval, not just the p-value.