P23StatisticsAdvancedInterpret18 min

Evaluate an A/B Test Beyond Statistical Significance

Decide whether a statistically significant conversion lift is worth shipping.

#ab-testing#effect-size#power#business-impact

Scenario

A checkout experiment raises conversion from 4.00% to 4.08% with p = 0.01 across two million sessions, but the redesign adds support cost.

Problem statement

Explain why p-value alone is insufficient and outline the decision framework.

Your Task

  1. Estimate practical effect size.
  2. Consider confidence intervals and guardrail metrics.
  3. Compare expected incremental value against implementation and support cost.

Related Concepts

Effect sizePowerGuardrail metrics

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