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Did the new checkout button actually lift conversions?

Asked at Amazon

An e-commerce A/B test runs 4,000 visitors through the old checkout (control) and 4,000 through a redesign (treatment). Control converts 200 visitors (5.0%); treatment converts 250 (6.25%). The product team is thrilled by the "25% relative lift."

Test whether the difference in conversion rates is statistically significant using a two-proportion z-test, and comment on the "25% lift" framing.

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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