Confidence

Understanding uplift in A/B testing

Understanding uplift in A/B testing
  1. What is uplift in AB testing?
  2. How do you calculate lift on a test?
  3. What does the confidence level of an A B test tell you?

What is uplift in AB testing?

Uplift: The difference between the performance of a variation and the performance of a baseline variation (usually the control group). For example, if one variation has a revenue per user of $5, and the control has a revenue per user of $4, the uplift is 25%.

How do you calculate lift on a test?

Lift is calculated by taking the difference between the treatment conversion rate and the control conversion rate divided by the control conversion rate. The result is the relative percent difference of treatment compared to control.

What does the confidence level of an A B test tell you?

Usually, people agree on α=5%, so the confidence level, which is calculated as a 1-α, is 95%. Thus, the confidence level (1-α) is the probability of NOT getting a Type I error (α). It's the percentage of confidence in the result if the test shows that variants A and B do not differ.

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