Pulling Back The Curtain on P-Values (or How I Learned To Love Small Data)

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For all of the talk about how awesome (and big, don’t forget big) Big data is, one of the favorite tools in the conversion optimization toolkit, A/B Testing, is decidedly small data.

Optimization, winners and losers, Lean this that or the other thing, at the end of the day, A/B Testing is really just an application of sampling.

You take couple of alternative options (eg. ‘50% off’ v ‘Buy One Get One Free’ ) and try them out with a portion of your users. You see how well each one did and then make a decision about which one you think will give you the most return.

Sounds simple, and in a way it is, yet there seem to be lots of questions around, significance testing, and in particular what the heck is the p-value is, and how to interpret it to help best make sound business decisions.

These are actually deep questions & in order to begin to get a handle on them, you need to have a basic grasp of sampling.

Hey, Cut The Curd!

I had a math professor in college who would go absolutely ballistic whenever anyone in class made a basic conceptual mistake. He must have grown up on …read more

Article Curated From…: Conversion XL