Ab Test

CLI Usage

# Test significance
python ab_test_calc.py --test 10000 500 10000 550

# Calculate sample size
python ab_test_calc.py --sample-size --baseline 0.05 --mde 0.10 --power 0.8

# Power analysis
python ab_test_calc.py --power-analysis --baseline 0.05 --mde 0.10 --samples 5000

# Bayesian analysis
python ab_test_calc.py --bayesian 10000 500 10000 550

1. Experiment Design & Sizing

Before running an experiment, determine if the design has sufficient statistical power.

Minimum Detectable Effect (MDE)

The MDE is a business constraint, not a statistical output. It answers: What is the smallest lift that justifies the cost of this feature?

• Sample size is inversely proportional to MDE². Halving the MDE requires 4× the traffic.
• Do not set MDE lower than "Practical Significance" (e.g., a 0.1% lift might be statistically significant but ROI negative).

Sample Size Calculation

result = calc.calculate_sample_size(
    baseline_rate=0.05,              # Current 5% conversion
    minimum_detectable_effect=0.10,  # 10% relative improvement
    power=0.8,                       # 80% power
    alpha=0.05                       # 5% significance level
)

print(f"Need {result['sample_size_per_variant']:,} visitors per variant")
print(f"Total: {result['total_sample_size']:,} visitors")

Duration Estimation

duration = calc.estimate_duration(
    daily_visitors=5000,
    baseline_rate=0.03,
    minimum_detectable_effect=0.15
)
print(f"Test will take ~{duration['days']} days")

2. Pre-Analysis Validation (Sanity Checks)

CRITICAL: Before interpreting any metric movements, validate experiment integrity.

Sample Ratio Mismatch (SRM)

Check if actual user ratio matches design (e.g., 50/50).

• Diagnosis: Chi-Square Goodness-of-Fit test
• Threshold: If p < 0.01, assume SRM exists
• Action: Discard the experiment. Do not try to "fix" the data.

Twyman's Law

"Any figure that looks interesting or different is usually wrong."

If a metric moves by a massive amount (e.g., +50% conversion in a mature product), assume it is a data error until proven otherwise.

See references/PITFALLS_AND_CHECKS.md for complete checklist.

3. Statistical Inference

Frequentist Analysis (Default)

Best for rigorous binary decisions (Ship/No Ship) with controlled error rates.

result = calc.test_significance(
    control_visitors=10000,
    control_conversions=500,
    variant_visitors=10000,
    variant_conversions=550,
    test="chi_square"  # or "z_test"
)

# Returns:
{
    "significant": True,
    "p_value": 0.0234,
    "control_rate": 0.05,
    "variant_rate": 0.055,
    "lift": 0.10,
    "confidence_interval": {"lower": 0.02, "upper": 0.18},
    "recommendation": "Variant shows significant improvement"
}

Bayesian Analysis

Best when you need "What is the probability B is better than A?"

result = calc.bayesian_analysis(
    control_visitors=10000,
    control_conversions=500,
    variant_visitors=10000,
    variant_conversions=550
)

# Returns:
{
    "prob_variant_better": 0.9523,
    "prob_control_better": 0.0477,
    "expected_lift": 0.098,
    "credible_interval_95": [0.02, 0.18]
}

See references/STATISTICAL_FRAMEWORKS.md for detailed methodology.

4. Multiple Variant Testing

Test multiple variants with correction for multiple comparisons:

result = calc.test_multiple_variants(
    control=(10000, 500),
    variants=[
        (10000, 550),  # Variant A
        (10000, 520),  # Variant B
        (10000, 480)   # Variant C
    ],
    correction="bonferroni"  # or "holm", "none"
)

print(f"Winner: {result['winner']}")

5. Decision Framework

Decision-making should not rely solely on statistical significance.

Guardrails

Check "Non-Negotiable" metrics (e.g., Latency, Error Rates). If these degrade beyond threshold, kill the experiment regardless of wins elsewhere.

Common Decision Errors

• Peeking: Checking p-values daily inflates False Positives from 5% to ~19%. Use Sequential Testing or Bayesian methods if early stopping is required.
• Post-Hoc Power: Never calculate power after the experiment based on observed lift.

API Reference

ABTestCalculator Class

class ABTestCalculator:
    def __init__(self, alpha: float = 0.05)

    # Significance testing
    def test_significance(self, control_visitors, control_conversions,
                         variant_visitors, variant_conversions,
                         test="chi_square") -> dict

    # Sample size calculation
    def calculate_sample_size(self, baseline_rate, minimum_detectable_effect,
                             power=0.8, alpha=0.05) -> dict

    # Power analysis
    def calculate_power(self, baseline_rate, minimum_detectable_effect,
                       sample_size, alpha=0.05) -> dict

    # Confidence interval
    def confidence_interval(self, visitors, conversions,
                           confidence=0.95) -> dict

    # Bayesian analysis
    def bayesian_analysis(self, control_visitors, control_conversions,
                         variant_visitors, variant_conversions,
                         simulations=100000) -> dict

    # Multiple variants
    def test_multiple_variants(self, control, variants,
                              correction="bonferroni") -> dict

    # Duration estimation
    def estimate_duration(self, daily_visitors, baseline_rate,
                         minimum_detectable_effect, power=0.8) -> dict

Example Workflows

Pre-Test Planning

calc = ABTestCalculator()

# 1. Estimate required sample size
sample = calc.calculate_sample_size(
    baseline_rate=0.03,
    minimum_detectable_effect=0.15,
    power=0.8
)
print(f"Need {sample['sample_size_per_variant']:,} visitors per variant")

# 2. Estimate test duration
duration = calc.estimate_duration(
    daily_visitors=5000,
    baseline_rate=0.03,
    minimum_detectable_effect=0.15
)
print(f"Test will take ~{duration['days']} days")

Post-Test Analysis

calc = ABTestCalculator()

# 1. Test significance
result = calc.test_significance(15000, 450, 15000, 525)

# 2. Get Bayesian probability
bayes = calc.bayesian_analysis(15000, 450, 15000, 525)

print(f"P-value: {result['p_value']:.4f}")
print(f"Lift: {result['lift']:.2%}")
print(f"Probability variant wins: {bayes['prob_variant_better']:.1%}")

Reference Documentation

• references/STATISTICAL_FRAMEWORKS.md - Frequentist and Bayesian methodology
• references/PITFALLS_AND_CHECKS.md - Validity threats and sanity checks

Dependencies

scipy>=1.10.0
numpy>=1.24.0

Install: pip install scipy numpy