Skip to main content
2 of 2
edited body
David
  • 2.7k
  • 1
  • 8
  • 18

We can think of the rate of visitors who purchased the product as the number of successes in an "experiment" that repeated 1382 times.

Therefore, that ratio of buyers/(total visitors) follows a binomial distribution. For 23 successes and 1382 attempts, its standard deviation can be estimated at around 4,75 (see https://en.wikipedia.org/wiki/Binomial_distribution)

About 95% of the time, you should expect results within two standard deviations of the mean, so I would build a confidence interval at around "from 13 to 32".

This means that, every 1382 visitors, you should expect between 13 and 32 purchases (in other words, between 1% and 2,3%)

I hope this helped!

EDIT NOTE: On my first answer I rushed through the calculations and made it wrong. It's done again properly and the results are now correct!

David
  • 2.7k
  • 1
  • 8
  • 18