Machine learning

Stage 2 · Lesson 9 of 9

Hypothesis tests, p-values and confidence intervals

The maths you need

A asks whether a difference you saw could just be noise. Say a new model lifts clicks from 4.0% to 4.3%. You start by assuming there is no real difference; this is the .

Then you compute the p-value: how likely a result at least this extreme would be if the null were true. A confidence interval gives a range of believable values for the true effect, such as a lift of 0.1 to 0.5 points. This is how you judge A/B tests and model comparisons.

Common trapThe traps matter more than the formulas. A p-value is not the chance that the null is true. A result with p < 0.05 is not necessarily large or useful. And if you test twenty metrics, one will look significant by chance.

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