Act when A/B result is not significant
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This question evaluates a candidate's competency in experimental design and statistical decision-making, covering sample size calculation, variance-reduction methods, interpretation of non-significant A/B results, multiplicity control, and sequential/Bayesian decision frameworks.
An A/B test for the 60s video change yields a non-significant lift on the primary metric at α = 0.05. Baseline completion rate is 22%. Product’s minimum meaningful effect is +5% relative (to 23.1%). At 80% power, two-sided test, equal allocation: (1) compute the required per-arm sample size and explain your formula/assumptions; (2) propose variance reduction (e.g., CUPED with pre-period completion, covariate adjustment) and estimate the power gain if R² = 0.25; (3) decide whether to continue collecting data, stop, or pivot to a Bayesian decision with a utility-based threshold; (4) discuss multiplicity control if multiple related outcomes are monitored; and (5) outline a sequential design (e.g., O’Brien–Fleming) that would have preserved Type I error while allowing early looks.
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