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Statistics, experimentation, causal reasoning · insight-0001

Size an A/B test from the smallest effect you would act on, not the effect you hope to see

Evidence type
practitioner heuristic
Difficulty
medium
Roles
Data scientist, Data analyst
Industries
aviation, e-commerce, cross-industry

Summary: situation, action, reason, boundary

  1. Situation

    A product owner asks how long to run a booking-page test and offers the uplift they expect, or no target at all.

  2. Action

    Agree the minimum detectable effect (MDE) as the smallest change that would justify shipping. Compute sample size from that MDE, the baseline rate, the significance level and the target power, then convert it to days of traffic.

  3. Reason

    Required sample size scales with the inverse square of the effect, so halving the MDE roughly quadruples the traffic needed. Anchoring on the decision threshold makes the test answer the business question.

  4. Boundary

    Fixed-horizon tests on conversion, revenue per visitor or other user-level metrics.

Symptom or risk

The test is sized for an optimistic effect, ends underpowered, and a realistic but valuable uplift is reported as "no effect".

Exceptions

When traffic can never reach the required size, switch to a larger unit of change, a stronger metric proxy or a non-experimental design with stated limits.

Trade-offs

A smaller MDE protects against missing modest wins but costs weeks of traffic and delays other tests.

Pitfalls

Computing power after the test from the observed effect; it adds nothing beyond the p-value.

Example

Hypothetical: 4% baseline conversion, 0.2 percentage-point MDE, 5% two-sided level and 80% power need about 154,000 sessions per arm.

Lessons and concepts