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Statistical significance

Statistical significance is a measure of how likely it is that a difference observed in a test, such as one page version converting better than another, is a real effect rather than random chance. It is usually expressed as a confidence level, commonly ninety-five percent, set before the test begins.

Also called: significance

Why it matters to a buyer

Checking a test's results every day and stopping as soon as they look good is one of the most common ways a genuinely inconclusive test gets reported as a clear winner, because random noise will cross a significance threshold temporarily even when there is no real underlying difference, and stopping early catches that noise rather than the truth. For a buyer, this is why a test's planned sample size and duration should be set in advance and respected, rather than treated as a rough guide to check in on.

How it is measured or applied

A confidence level, typically ninety-five percent, is set before the test starts, along with the required sample size calculated from the site's current conversion rate and its minimum detectable effect. The test then runs for full weeks until the planned sample is reached, and the result is read once, at the end, rather than monitored daily and stopped whenever it happens to look favourable. Reaching statistical significance means the difference is unlikely to be random, but it is not the same as reaching the minimum detectable effect the test was actually sized to find with confidence.

Sources

  1. Statistical significance, Optimizely

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