Intermediate level · Module 5: Testing Changes and Causal Thinking · Lesson 3 of 3
Interpreting Test Results
Read pilot results with care, considering noise, size and practical importance.
In this lesson you will
- Compare test and comparison results
- Judge whether a difference is large and reliable enough to act on
Key concepts
difference between groupsnoisesample sizepractical significance
The lesson
Compare the metric in the test and comparison groups: 32% of reminded customers returned versus 25% of others is a 7-point difference.
Small groups produce noisy results; a difference from 20 customers is much less reliable than one from 2,000. Repeat or extend pilots when in doubt.
Ask whether the difference is worth the cost: does the extra margin from returning customers exceed the cost of the SMS?
Step by step
- Calculate the metric for both groups.
- Calculate the difference.
- Consider group size and noise.
- Compare benefit with cost and recommend.
Practice activity
Analyse the provided pilot results and recommend whether to scale.
Expected result: A recommendation that weighs the difference, its reliability and its cost.
Check your understanding
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Why are results from small groups less reliable?
Show answer
Random variation has a bigger effect.
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What must a useful improvement also be?
Show answer
Worth its cost.
Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.