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This is my first question on this stackexchange - i hope i'm in the right place and i'm asking the right question.

I work for a business, we sell certain products. We are running a trial currently on a a subset of these products where we are trying to impact on the margin we make on these products by altering (on purpose) which sales channel we sell them on. However, this may not work in all cases, e.g. we may stop selling the item because it is not sellable on the new sales channels.

I'm trying to do the following:

  • I have a list of productids where we applied this mechanism

  • I know how much we sold before and after the trial started, i know the margin made on each sale

  • I know how much we have received into stock from the item before and after the trial

  • I know how much we had on stock when we started the trial

I need advice on the following: * Am i right to assume that the ratio of margin of total sales vs. the units we have receied into stock is the right answer? So if the margin is 10 before the trial and 20 after, but we received 2 items before and 5 after, we are worse off?

  • How should i involve the stock amount we had on sale when we started the trial in my calculations?

  • Is there any available reading i should look into to educate myself?

  • Last question: provided i get answers on the above questions, i'll be able to flag each of my products with a "SuccessfulTrial" flag - true or false. Based on that, i can build some regression to find which product specifics have an impact on the success of this mechanism. Is my thinking right?

Thanks for any answers,

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Welcome to the forum. I don‘t know how well you understand statistical models. However, as you want to evaluate some (exogenous and controlled) change, you could start off with „difference in difference“ https://en.wikipedia.org/wiki/Difference_in_differences.

This is the standard method for ex post evaluation and it is very flexible in controlling other influential factors.

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    $\begingroup$ Hello! This is exactly the kind of content i'm looking for - i can read it, understand it and see if it applies or not. Thank you very much! I need some time to digest this :) $\endgroup$
    – Zsolt János
    Nov 10, 2019 at 12:34

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