Lessons  ·  Lesson 02

Statistical significance

Everybody quotes 95% and almost nobody states what it is 95% about. It is not the chance your variant is better. It is a statement about how often this procedure would mislead you if there were no difference at all.

Every term used above is defined in our experimentation glossary, and three experiments taken apart step by step sit in the case studies. Longer pieces with the workings attached are in the field notes.

Part 1

What the number actually says

It says: if the two versions were identical, a result this extreme would appear by chance about 5% of the time. It says nothing on its own about how likely your variant is to be better, because that also depends on how often your ideas are right in the first place.

Do this: Stop reading significance as «95% chance the variant wins». Read it as «this would happen by luck one time in twenty».

Part 2

The 5% assumes one look

The maths is built on a sample size chosen before launch and a single decision at the end. Checking daily and stopping when it crosses gives the effect many chances to appear by luck.

Do this: Fix your sample size before launch and look once, or use a sequential method designed for repeated looks.

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Part 3

Significant and meaningless are compatible

With enough traffic a 0.1% difference becomes significant. Significance tells you an effect probably exists. It does not tell you the effect is worth the engineering time.

Do this: Decide the smallest lift worth shipping before the test. Compare the result against that, not only against the p-value.

Part 4

Confidence intervals say more than a verdict

An interval running from minus 2% to plus 9% is honest about what you learned, which is «probably not harmful, possibly useful». The single word «significant» hides all of that.

Do this: Report the interval alongside the verdict. It changes what people do with the result.

This is teaching material and our own reading of standard practice, not advice for your specific site. Check anything important with your own specialist before you act on it.

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