Statistical significance
- Optimizely Web Experimentation
- Optimizely Performance Edge
- Optimizely Personalization
- Optimizely Feature Experimentation
- Optimizely Full Stack (Legacy)
Statistical significance (known as stat sig) measures how unusual your A/B test results would be if there were no difference between your variation and baseline and if the difference in lift was due to random chance alone.
Note
Multi-armed bandit optimizations do not generate statistical significance.
When you observe a lift with 90% or higher statistical significance, the observed results are more unusual than expected in 90% of the cases if there was no lift. Assuming there was no difference in performance between the variation and the baseline, the higher your statistical significance, the more unusual your results seem.
Optimizely does not declare a variation statistically significant or update the Confidence Interval until your experiment meets specific criteria for visitors and conversions. These criteria are different for experiments using numeric and binary metrics.
- Numeric metrics (such as revenue) – Do not require a specific number of conversions, but require 100 visitors or sessions in the variations.
- Binary metrics – Require at least 100 visitors or sessions and 25 conversions in the variation and the baseline before a winner can be declared.
In statistics, you observe and use a population sample to infer the total population. Optimizely uses statistical significance to infer whether your variation caused movement in the metric.
Statistical significance helps Optimizely control the rate of errors in experiments. In any controlled experiment, there are three possible outcomes:
- Accurate results – When there is an underlying, positive or negative difference between your original and your variation, the data shows a winner or loser. When there is not a difference, the data shows an inconclusive result.
- False-positive (Type I Error) – Your test data shows a significant difference between your original and your variation, but there is random noise in the data—there is no underlying difference between your original and your variation.
- False-negative (Type II Error) – Your test is inconclusive, but your variation differs from your baseline.
Statistical significance measures how likely your improvement is from an actual change in underlying behavior instead of a false positive.
Lower significance levels may increase the likelihood of error, but can also help you test more hypotheses and iterate faster. Higher significance levels decrease the error probability but require a larger sample.
Choosing the right significance level should balance the types of tests you are running, the confidence you want to have in the tests, and the amount of traffic you receive.
One-tailed and two-tailed tests
When you run a test, you can run a one-tailed or two-tailed test.
- Two-tailed tests – Detects the differences between the original and the variation in both directions. Two-tailed tests tell you if your variation is a winner and if your variation is a loser.
- One-tailed test – Tells you whether the variation is a winner or a loser, but not both. One-tailed tests detect differences between the original and the variation in only one direction.
Optimizely uses two-tailed tests because they are required for the false discovery rate control in Stats Engine. False discovery rate control is more important when making business decisions than whether you use a one-tailed or two-tailed test because you want to avoid implementing a false positive or negative.
Segmentation and statistical significance
You can segmentsegment your results on the Optimizely Experiment Results page to see if certain groups of visitors behave differently from your visitors overall. However, Optimizely does not perform additional false discovery rate control across the various segments.
Because of this, you should avoid repeatedly segmenting your results and looking for a segment that is significant. Your chances for a false discovery increase significantly with the number of segments you look at. You can limit the risk by only testing the most meaningful segments.
Novelty effect and statistical significance
The statistical significance from a novelty effect stays for a long time. As the A/B test continues running, statistical significance calculations self-correct and consider how long the test is running for, not just the sample size.
Change the statistical significance setting
You should know certain trade-offs associated with changing the statistical significance setting. In general,
- A higher significance setting is more accurate and increases the time required for Optimizely to declare significant results because it requires a larger sample size.
- A lower statistical significance level decreases the amount of time needed to declare significant results, but lowering the statistical significance setting also increases the chance that some results are false positives.
For information, see Change the statistical significance settingChange the statistical significance setting.
Note
Changing your statistical significance setting instantly affects all currently running experiments. If your experiment has a goal with an 85% statistically significant winner, and you change your statistical significance setting from 90% to 80%, the next time you load your Experiment Results page, you see a winner (85% > 80%). Your confidence intervals also shrink to reflect the reduced need for confidence.