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by Tinyyy
1994 days ago
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I think there can be prior that a professional looking ad can generate more clicks. Your argument shows a lack of statistical understanding - conditional on this data, the Bayesian approach would be to update the prior (whether A is better, or they’re equally as good) with the data collected. With such a small dataset, you might end up with a belief that there’s a 60% probability that B is better than A, but that’s not significant enough to conclude that B is in fact better than A, as you still have a lot of uncertainty. With a prior that A is superior, you may still end up believing that A > B after updating, because there’s just so little data. |
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And my main point is that a 60% probability is in fact actionable in the real world, in a situation where you are forced to take action with incomplete information. Assuming you are running an ad campaign, you have to choose one of the two.
P=.95 still is an arbitrary threshold, even if it's a commonly used one.