11.1) A/B Testing Vitor Kamada December 2019 Vitor Kamada ECO 7100 Econometrics I December 2019 1 / 13 Reference Tables, Graphics, and Figures from Computational and Inferential Thinking: The Foundations of Data Science Adhikari & DeNero (2019): Ch 12.1 A/B Testing https://www.inferentialthinking.com/ Vitor Kamada ECO 7100 Econometrics I December 2019 2 / 13 Stat Labs by Deborah Nolan and Terry Speed Vitor Kamada ECO 7100 Econometrics I December 2019 3 / 13 H0 : µs = µns vs HA : µs < µns Vitor Kamada ECO 7100 Econometrics I December 2019 4 / 13 Test Statistic Vitor Kamada ECO 7100 Econometrics I December 2019 5 / 13 Difference between the Means Vitor Kamada ECO 7100 Econometrics I December 2019 6 / 13 Random Permutations Vitor Kamada ECO 7100 Econometrics I December 2019 7 / 13 Predicting the Statistic Under the H0 Vitor Kamada ECO 7100 Econometrics I December 2019 8 / 13 Simulation Vitor Kamada ECO 7100 Econometrics I December 2019 9 / 13 Vitor Kamada ECO 7100 Econometrics I December 2019 10 / 13 Another Permutation Test Vitor Kamada ECO 7100 Econometrics I December 2019 11 / 13 Simulating 5,000 Values of the Statistic Vitor Kamada ECO 7100 Econometrics I December 2019 12 / 13 Vitor Kamada ECO 7100 Econometrics I December 2019 13 / 13