Business Part 2 Flashcards
(15 cards)
What is A/B testing?
A method of comparing two versions of a variable to determine which performs better.
What is the control group in A/B testing?
The group that receives the default or original version.
What is the treatment group?
The group that receives the variation or new version.
What is statistical significance in A/B testing?
The probability that observed differences are not due to chance.
What is the p-value in A/B testing?
The probability of observing a result as extreme as the one obtained if the null hypothesis is true.
What is a pre-test/post-test design?
Measuring outcomes before and after the intervention to assess its effect.
What is a holdout group?
A segment of users not exposed to any changes for comparison purposes.
What is sample size calculation in A/B testing?
The process of determining how many users are needed to detect a meaningful effect.
What is multiple testing?
Running many tests, increasing the chance of false positives.
What is p-hacking?
Manipulating experiments or analysis to produce significant p-values.
What is causal inference?
Drawing conclusions about cause-and-effect relationships.
What is a confounder?
A variable that influences both the treatment and the outcome.
What is randomization used for?
To eliminate confounding by evenly distributing unknown factors.
What is uplift modeling?
Modeling the incremental effect of a treatment on individual behavior.
What is an instrumental variable?
A variable that affects the treatment but not directly the outcome, used to infer causality.
