Metadata
- Author: Itamar Faran
- Full Title:: How to Do Bayesian a/B Testing at Scale
- Category:: 🗞️Articles
- URL:: https://towardsdatascience.com/how-to-do-bayesian-a-b-testing-fast-41ee00d55be8
- Finished date:: 2024-05-06
Highlights
The Beta-Binomial model is used to model binary data such as conversions or clicks (“did the user convert or not?”). I’ll also review the Normal-Normal model, which is used for continuous data (for example revenue per user). In the Beta-Binomial model we assume that the conversion rate Pᴀ has a Beta distribution with parameters α and β. A common choice for α and β is 1, which results with a uniform distribution (sometimes referred to as an “uninformative prior”). I discuss the choice of the prior in more detail in the appendix, but for now let’s continue as if they have already been chosen. (View Highlight)