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A/B Testing: preprocessing, two proportions z-test, computing critical z‐value and z-statistic.

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A/B Testing


To learn how to create a SageMaker notebook instance click here


Definition: A/B testing is a way to compare two versions of something to find out which performs better. It is one of the simplest forms of a randomized controlled experiment.

How it works: the test works by showing to two groups of users, assigned at random, different versions of a product, drug, site, etc., and determining which version has most successful metrics (previously chosen according to the goals of the experiment).

Technical characteristics:

  • Randomized controlled experiment.
  • One version is the control and the other is the treatment. The treatment is a new version that we want to figure out if it performs better than the old one (in clinical trials the control can be a placebo).
  • One has to estimate the sample size to achieve statistical significance.
  • Blocking technique should be used whenever necessary as a means of accounting for certain biases that may be found in any group to maintain randomness in our sampling.

Info on datasets:

You can find the dataset → here.

  • The dataset contains information about almost 300K users that were involved in a A/B test. It is an unpaired dataset.
  • Features:
    • user_id: unique identifier for each user.
    • timestamp: associated date and time for each visit to the website by a given user.
    • group: the category a user was grouped into pre-A/B test (control or treatment groups).
    • landing_page: the page that was displayed to a user when they visited the company website (new_page or old_page).
    • converted: whether a user converted or not (0 or 1); Note: Users in the control group ought to be displayed the old page, while those in the treatment group ought to see the new page.

Aditional consideration:

  • Radical redesigns are best tested using an A/B experiment, while multivariate tests indicate how various user interface elements interact with each other and support incremental improvements to a design.

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