Posts tagged hierarchical models

Multiple Experiments and Bayesian Meta-analysis

Eight quarterly A/B tests of the same checkout-flow redesign, run across eight markets, return eight different point estimates. Two cross the conventional significance threshold; the other six do not. The product manager asks the natural question, “did it work?”, and gets two incompatible defaults depending on which colleague answers: vote-counting (“four out of eight worked, so it’s a wash”), or pool-everything (“the combined estimate is positive, so it works”). Both are mistakes. The vote-count discards the magnitude information in each estimate; the pool-everything pretends the markets are exchangeable in a way the evidence does not support. The honest answer requires a model that estimates between-market differences rather than assuming them away.

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