A team conducts an A/B test. Version B receives more clicks, but customers using it are less likely to complete a purchase. What should the team conclude?  

Two teams are testing the same business hypothesis. Team A builds a polished application in four months and attracts 400 users. Team B manually provides the proposed service to 20 customers in one week and learns that customers value only one part of the offering. Which team has necessarily made more progress according to Ries?

Rent the Runway (RTR) Business Case (Abridged) Every woman should have access to this Cinderella experience for the special occasions in her life. Rent the Runway sells the self-confidence that comes when a woman wears brands she never dreamed she would be able to afford. Whether a woman is 15 or 55, she wants to feel beautiful. Rent the Runway makes refreshing your wardrobe a magical, convenient experience.Jenn Hyman, co-founder and CEO, Rent the Runway, met at Harvard Business School. Fleiss had worked in investment banking as an internal consultant, and Hyman had helped launch Starwood Hotels’ wedding business as an in-house entrepreneur. Hyman’s inspiration came in November 2008 when she observed her sister spend $1,500 on a Marchesa dress for a wedding, even though her income was only $55,000 a year. Hyman thought it was crazy to spend so much and saw the market for designer apparel as flawed: young women couldn’t afford the brands they truly desired, and designers couldn’t access young women to build brand loyalty. Hyman shared her idea for a dress rental business with Fleiss. They felt their skills complemented each other well. Hyman was more of a visionary, while Fleiss was more task-oriented and better at execution. Neither had any experience in the designer apparel business, which had generated $149 billion in sales in the U.S. in 2008, $80 billion from dresses alone. In December 2008, two weeks after Rent the Runway (RTR) was conceived, the women cold-called Diane von Furstenburg, an influential fashion designer who was also president of the Council of Fashion Designers of America. Von Furstenburg met with them and was intrigued by the idea, and invited a proposal. Fleiss and Hyman initially devised a plan for a turnkey service that would allow von Furstenburg’s company, DVF, and other designers to rent their dresses through the designers’ own websites. Designers would bear the costs of website upgrades, dress inventory, and customer acquisition. RTR would manage the backend information technology, warehouse, and customer service operations for a transaction fee. Von Furstenberg insisted that she would jump in only if other designers would as well. In February and March 2009, Hyman and Fleiss met 20 designers. Hyman added, “We were going to designers as two young women who’d never worked in fashion, asking to buy their inventory so we could rent it at the same time it’s available in Saks Fifth Avenue and Neiman Marcus for 10% of their retail price. In the first five meetings, their response was basically, ‘over my dead body’.” Realizing that the designers would not be interested in partnering on a turnkey system, Hyman and Fleiss expanded their vision. They would acquire inventory themselves and offer rentals from a broad range of designers through their own branded website. The co-founders also refined their approach to designers.Instead of trying to sell the RTR concept, they asked for the designer’s advice and listened carefully to concerns about retail cannibalization and brand dilution.Hyman recalled, “Our goal was to listen… to objections so that we could create a service that… [met their needs.]”. By the end of March, they stopped focusing on a superior price for consumers, and instead positioned RTR as a new customer acquisition channel, exposing young women to brands they couldn’t otherwise afford: “Rent the Runway is the gateway drug to designer fashion”. By July 2009, RTR had supply agreements with 15 top dress designers. In April 2009, the co-founders invited 140 women to two market trials; 125 attended. For the first trial at Harvard College, they offered 130 mid-price dresses from 15 designers with retail prices ranging from $150 to $1,500. They held a styling session in a dormitory common room to assess the appeal of rental for different price points, styles, and sizes. Women were encouraged to try on dresses, which were offered for rental at prices between $35 to $75, plus a $4 insurance charge. 34% of the Harvard trial participants rented dresses. Hyman recalled, “A junior tried on a silver-sequined Tory Burch mini-dress. When she put it on, the expression on her face changed. She twirled in front of the mirror, threw back her shoulders, turned to her friends, and said, ‘I look hot!” And I said to Jenny, ‘That is our business’. It was the first time “we saw the self-confidence and powerful emotional experience that Rent the Runway can deliver.” At the second market trial, at Yale College, women could view the dresses, but were not allowed to try them on. 75% rented. For both trials, 85% of the rentals were returned within 24 hours, and the rest within two days. 51 of the 53 were returned in perfect condition, while the other 2 had minor stains that were easily removed by a dry cleaner. RTR launched as an invitation-only website with free membership; members received an email invitation. Members entered their size and date of rental, and then selected a dress. Rental fees ranged from $50 to $300 for a four-day rental — about 10% to 15% of the retail price for a new dress. Members were shipped a second size of the same dress style free of charge to improve the odds that the dress would fit. Renters also paid two-way shipping charges of $12.95 and a $5 insurance fee. After a rental, dresses were sent to a high-end professional dry cleaner to prolong their life. RTR launched its beta service with about 5,000 invited members on November 2, 2009, one week before its full public launch. The beta test suggested strong demand. Luckily, a business reporter had been a beta user, and The New York Times ran a business section cover story on November 9th, which brought 60,000 visitors to the site. Unexpectedly strong demand led to an inventory shortage for New Year’s Eve, when 75% of the inventory was rented. By December, RTR’s waiting list for membership had reached 50,000. On average, during the site’s first two months, 60% of dress inventory was out for rental, and 12.5% of customers had ordered more than once. What type of Lean Start-Up MVP is RTR?

NoteNest switches from $3.99/mo. to $29/yr. prepaid while holding distribution channel, End-User Profile, and MVP constant. Which is being tested most directly?

Question 2 A city prohibits drinking alcoholic beverages in a public park, even though consuming the same beverage is lawful for an adult in many other locations. A person receives a citation solely for violating the ordinance. The prohibited conduct is best characterized as:

Question 4 On October 1, a state legislature makes possession of a particular substance a crime. The statute becomes effective immediately. Prosecutors then charge Dana solely because Dana possessed the substance on September 15, when possession was lawful. What is the strongest constitutional objection?

Honorlock can be taken with what web browsers?

If you can answer this question and submit this quiz that means your computer is ready.  Which of the following best describes the purpose of this Honorlock Check Quiz?

Based on the guidelines and expectations provided on pages 153-156, write me a formal email introducing yourself and explaining why you took this course. This email only needs to be a few sentences. Do not send the email to my email. Create and submit the email in the answer box provided. You should include the heading (email address and subject line), a salutation, and footer (signature line including your name, company info, etc.) in the assignment submission. Remember these common expectations when submitting future assignments that involve email correspondence or when emailing me or other instructors throughout the quarter. Please try to correct the format (spacing of headers and footers, for example) as much as you are able.   Rubric for Grading (10 Points Total) 2.5 Points: free of grammatical, sentence level, and spelling errors 2.5 Points: Adheres to layout and design principles 5 Points: follows assignment prompt   Please Note: Some assignments are due earlier than other assignments. I have provided the ability for people to turn in this first weeks assignments late but that will go away next week. If you notice you have missed the due time of the assignments this week, but the assignment is still open and allowing submissions, just submit the assignment (no need to email me). Make sure you note the due time of assignments, as they will not allow late submissions. The purpose of having some assignments due slightly earlier, is to encourage people to complete some assignments before others.

Among 100 residents, 55 subscribe to newsletter A, 48 to B, and 42 to C. The pairwise overlaps are 25 for A and B, 20 for A and C, and 18 for B and C; 10 subscribe to all three. How many residents subscribe to none of the newsletters?