[HN Gopher] The Low Base Rate Problem (2014)
       ___________________________________________________________________
        
       The Low Base Rate Problem (2014)
        
       Author : Tomte
       Score  : 58 points
       Date   : 2022-04-12 10:01 UTC (2 days ago)
        
 (HTM) web link (www.evanmiller.org)
 (TXT) w3m dump (www.evanmiller.org)
        
       | xpe wrote:
       | Here is a one page visual diagram (GPL licensed) I created a
       | while back to show a large number of statistical classification
       | metrics in a way that reveals an underlying symmetry. It also
       | shows synonyms for metric across fields.
       | 
       | https://github.com/xpe/statistical-classification-metrics/bl...
       | 
       | (PDF and OmniGraffle versions also available)
        
       | tqi wrote:
       | While this is all true, I think the reason why people so often
       | run underpowered tests is not because they "lacks a firm
       | understanding of statistical power" but because we have not made
       | a compelling case for an alternative. UXR surveys? In my
       | experience that is even more underpowered than AB tests. User
       | testing? Often just as subjective as gut calls.
       | 
       | Gut calls (ie product sense) seem like the only real choice, but
       | I think there really needs to be an argument made for WHY that is
       | the way, rather than just against other options.
        
         | xpe wrote:
         | I tend to notice when people write 'the only choice' or 'the
         | only real choice' when they probably mean something more like
         | (1) an option that, when examined, seems best; or (2) an
         | unexamined (sometimes dogmatic) choice. In some cases, a person
         | may have a third intent: by linguistically limiting a choice
         | set, they can frame or limit a discussion (for good or ill).
        
           | tqi wrote:
           | I dunno about all that, but in my case what I mean is "the
           | only choice that would satisfy the author's criteria of being
           | statistically sound"
        
         | xpe wrote:
         | Yes, in some cases, teams want an experiment to back them up.
         | 
         | If a decision maker cannot dedicate the necessary resources to
         | properly power a test, it arguably would be more rational to
         | use another process to make the decision. Perhaps a
         | thoughtfully designed team discussion or even a 'Person P will
         | make the decision because the uncertainty is relatively high,
         | consensus is relatively low, and additional discussion is
         | unlikely to clarify -- meanwhile we could go ahead and try the
         | thing and see what happens!"
        
           | tqi wrote:
           | > If a decision maker cannot dedicate the necessary resources
           | to properly power a test
           | 
           | Apologies if this is what you meant, but in a lot of cases
           | it's not a matter of not dedicating enough resources so much
           | as there aren't enough resources (ie visitors, users, posts,
           | etc) to detect reasonable effect size. And in those cases, it
           | seems like the author's point is that running a test is
           | actively worse than a gut call or focus group or whatever
           | else. But to your point, product teams often don't like gut
           | calls because they feel subjective and unilateral, so having
           | a test allows some degree of shared accountability for
           | decisions.
        
             | xpe wrote:
             | Well said.
        
       | xpe wrote:
       | > Significance is the probability of seeing an effect where no
       | effect exists.
       | 
       | In my experience, the term _significance level_ is more common
       | and clearer.
       | 
       | From Wikipedia:
       | 
       | > More precisely, a study's defined significance level, denoted
       | by a (alpha), is the probability of the study rejecting the null
       | hypothesis, given that the null hypothesis is true; and the
       | p-value of a result, p, is the probability of obtaining a result
       | at least as extreme, given that the null hypothesis is true. The
       | result is statistically significant, by the standards of the
       | study, when p <= a.
        
         | xpe wrote:
         | Also, I prefer to use the term _statistical significance_ over
         | just _significance_ because it is clearer to a broad audience
         | across fields. From Wikipedia:
         | 
         | > The term _significance_ does not imply importance here, and
         | the term _statistical significance_ is not the same as
         | _research significance_ , theoretical significance, or
         | _practical significance_. For example, the term _clinical
         | significance_ refers to the practical importance of a treatment
         | effect.
        
       | demopathos wrote:
       | What I don't understand is why power would be so relevant. I want
       | to know if going from A to B would increase my revenue. I run an
       | A/B test and see statistical significance, even if a minor one. I
       | now know that B is better than A.
       | 
       | I suppose the need for a power calculation comes in when
       | considering effort. If I need 10 engineers for a month to build
       | out a feature that won't get the power it needs for a year, it
       | may not be worth it.
        
         | thelamest wrote:
         | >I run an A/B test and see statistical significance
         | 
         | That's exactly what power gives you: a fighting chance to
         | detect anything. Not sure where the misunderstanding comes from
         | - it's about the worthwhileness of tests themselves, not
         | "features".
         | 
         | You may think about power visually by relating them to
         | confidence intervals - higher power - more precise (expected)
         | estimate. Low power - bands so wide that you can just as well
         | use an RNG.
        
         | bkfunk wrote:
         | Power is important if you want to distinguish between noise and
         | true signals. In other words, if you care about P(real effect |
         | significant).
         | 
         | From good ol' Bayes we get:
         | 
         | P(real|sig) = P(sig|real) x P(real) / P(sig)
         | 
         |  _P(sig|real)_ is the power; so if you have more power, all
         | other things being equal (a bit of a weaselly caveat), the
         | likelihood that your stat sig result is real is higher.
        
         | xpe wrote:
         | Not just effort: there usually are many costs associated with
         | change. Perhaps user disorientation, downtime, as well as a
         | lack of long term understanding of how the change plays out in
         | combination with other factors.
         | 
         | A small improvement may not be worth it right now.
         | 
         | Perhaps it can be deferred. Perhaps it makes sense to bundle it
         | with other changes later. *
         | 
         | * Some changes might reflect better on a product when they are
         | rolled out together; e.g. to signal a major release.
        
         | placidpanda wrote:
         | > What I don't understand is why power would be so relevant.
         | 
         | Doing the A/B test itself has a cost greater than just building
         | the feature and releasing it (supporting two variants in
         | production), and beyond that you also need to take into account
         | the cost of acting on the results (i.e. if control wins what do
         | you do? if it's a tie what do you do? best to budget for
         | maximum possible effort, or the expected effort -- but
         | expecting for the variant to win handily is budgeting for the
         | minimum possible effort).
         | 
         | I've seen multiple businesses that always schedule around
         | shipping an A/B test and context switching to the next project
         | while the results stream in. Any result that isn't shipping the
         | variant after x weeks is a huge inconvenience that throws off
         | multiple teams, which means all those cognitive biases start to
         | creep in and make it comfortable to declare loser variants as
         | wins or ties.
         | 
         | While it's easy to write this behavior off as yet another way
         | that groups make irrational decisions, I think the bit of truth
         | in there is that sometimes, the cost of running the strictest,
         | science-iest A/B test is simply too high. Power is a key part
         | of how you reason that out up front, so you can make a rational
         | decision _not_ to test, or to modify your test to make the
         | payoff worth it. For example:
         | 
         | * Let's set the goal metric for something higher up the funnel
         | which is further from our true goal (more $) but happens much
         | more often, so we can see the effect in 1 week instead of 2
         | months
         | 
         | * We really need to do this for [variety of business
         | strategical decisions], so let's structure our experiment to
         | make sure it won't cost us more than $X in a worst case
         | scenario and find out in a few days rather than wait 2 months
         | 
         | > I now know that B is better than A.
         | 
         | You know that B outperformed A in the experiment. Checking
         | statistical significance is like asking a trustworthy person
         | "Are you sure?" and them saying "Yeah, I'm pretty sure". It's a
         | percentage because it's sometimes wrong, and this doesn't
         | account for the massive amount of real world factors that can
         | still mean an experiment conducted with bulletproof math behind
         | the analysis is still taking people down the wrong path.
        
       | xpe wrote:
       | > The situation is even more depressing at lower conversion
       | rates.
       | 
       | Depressing? That is an unnecessary and unfortunate word choice. I
       | would suggest 'pronounced'.
       | 
       | The degree to which interventions can be distinguished is not
       | inherently good or bad. To make such an assessment, context is
       | required.
        
         | placidpanda wrote:
         | Right you are, but in defense of the author, understanding this
         | concept while looking through readouts done by past colleagues
         | has also made me feel depressed at times.
        
       | ZeroGravitas wrote:
       | I don't know if it's my civic-minded love for humanity or my
       | laziness, but whenever someone describes a common failure mode
       | and then expects me to do work to catch it every time it
       | inevitably happens, my brain screams "no!". The tooling,
       | processes and community should make this problem impossible by
       | design and/or easily caught in a semi-automated manner.
        
         | placidpanda wrote:
         | In my work experience so far, when it comes to A/B testing what
         | I've observed is that:
         | 
         | * The better the tooling in general increases the proportion of
         | people doing it _wrong_, because when it was harder, this
         | selected better for people who wanted to do it right. Making it
         | easier means more people do it right, but more people who would
         | otherwise not do it at all can now do it, and do it wrong.
         | 
         | * Making aspects impossible by design will impress and amaze
         | you with how humans and groups figure out how to not only
         | prevail over what you tried to make impossible, but do it even
         | harder than if you did nothing at all.
         | 
         | The best I think we can hope for is making things by default
         | easier to catch, or easier to find later, or less deceptive.
         | 
         | Hard things are hard and that's ok. I think we should spend
         | more time channeling our empathy into aspiring for ourselves
         | and others to be better and do hard things, and making the
         | ability to learn and do hard things accessible to everyone who
         | wants it, as opposed to trying to pretend hard things are easy.
        
         | xpe wrote:
         | I hear you, _and_ our perceptual lenses are part of our
         | tooling. Our mental tooling.
         | 
         | A change in mindset can be brought can be encouraged and
         | developed by a combination of process and community. This
         | includes educational processes supported by public policy,
         | market mechanisms, and communities.
         | 
         | I believe we need a revolution on how we educate ourselves. How
         | we get there is non-obvious.
         | 
         | If sound statistical thinking was taught, nurtured, and
         | synthesized across many domains, I think it is likely that
         | humanity would be better off.
        
         | marginalia_nu wrote:
         | Good science just doesn't reduce to a script. You need to
         | actually understand what you are doing to interpret the results
         | correctly.
         | 
         | It's why people spend a decade getting a PhD, and many years
         | more still to become a professor. You can't do good science by
         | putting numbers in a spreadsheet and have the computer do all
         | the thinking for you.
        
           | xpe wrote:
           | I missed the connection between your comment and its parent
           | comment. Would you please elaborate?
           | 
           | Perhaps you are thinking about a situation where the result
           | of an AB test is accepted and incorporated into a product
           | without reflection on the associated factors and context?
        
             | marginalia_nu wrote:
             | I took the GP to mean they wanted tooling to do design and
             | interpret A/B tests for them rather than having to consider
             | cases like false negatives and what have you, to reduce
             | them down to something that's easier to understand.
             | 
             | My point is that the process of designing experiments and
             | interpreting their outcome is nothing other than science.
             | 
             | Science is hard and goes much deeper than the trivial stuff
             | like significance and power. Even scientists, who know all
             | these formulae inside and out struggle with constructing
             | experiments and interpreting the outcome.
             | 
             | To properly think about experimental outcomes, you need to
             | actually have a firm grasp of statistics. The moment you
             | try to convert it into a message that doesn't require
             | understanding statistics is the moment it stops being
             | informative.
        
         | avidiax wrote:
         | I believe that's what Google does.
         | 
         | I'm not confident that it makes a big difference, because in
         | the face of anything "idiot-proof", nature will provide a
         | better idiot.
         | 
         | It is really easy to A/B test having a small static button vs a
         | large, flashing, jumping button with sound, and measure
         | engagement as "ever clicked the button". It passes statistical
         | power and significance since most of your users now click the
         | button, even if none of them did before. The failure here is
         | that the button is simply annoying, and clicking the button is
         | not a legitimate engagement with the feature, hence the
         | statistical power to answer the question "does a flashing
         | button promote engagement with the feature" is actually zero.
        
       | PheonixPharts wrote:
       | To preface this comment, I generally really like Evan Miller's
       | writing on statistics, but this statement:
       | 
       | > anyone who lacks a firm understanding of statistical power
       | should not be designing or interpreting A/B tests.
       | 
       | Completely ignores that you can approach A/B testing from an
       | entirely Bayesian perspective (which Miller has written about
       | fairly well in the past).
       | 
       | I might be a bit biased in favor of Bayesian methods, but I'm
       | honestly a bit surprised that many people still run A/B tests
       | using a frequentist frameworks such as this.
       | 
       | The biggest reason I would argue to dismiss the NHST (Null-
       | hypothesis significance test) approaching is because _A /B Tests
       | are not really controlled experiments_, at least not in the same
       | way clinical trials are. User behavior is always observational
       | even if you have a control group. Whether you go NHST or Bayesian
       | is a coin toss in a controlled environment, but when looking at
       | user behavior on a web site it's much better to think in Bayesian
       | terms.
       | 
       | Other reasons why a Bayesian frame work should be used:
       | 
       | - Marketers care about "Probability A is better than B", not
       | "failure to reject null hypothesis".
       | 
       | - If you've been running A/B tests for years, you most certainly
       | have a very good prior over the distribution of conversion rates.
       | It's literally wasting your time and money not to make use of
       | these.
       | 
       | - If you're measuring human behavior on a website, there are
       | absolutely confounding variables at play and you want to model
       | these explicitly. It's much easier to do this when thinking in a
       | Bayesian framework.
       | 
       | I've been designing and running A/B test of all sorts of
       | complexity at all sorts of companies for a very long time, and my
       | experience has been that approaching the problem from a Bayesian
       | perspective is by far the superior way to run your tests.
        
         | clircle wrote:
         | Even though you can analyze a test Bayesianly, you still need
         | to know about power (or some Bayesian alternative to power) to
         | plan a sample size.
        
           | PheonixPharts wrote:
           | This comment reminded me of yet another reason to prefer the
           | Bayesian set up for A/B tests: you work with the data you
           | have not some bizarre idea of "sample size".
           | 
           | Especially with proper priors (which again, everyone running
           | an A/B test should have at this point) you don't have to
           | "plan a sample size". You work with the data you have, and
           | assess the risks in the decision give what you know. There is
           | likewise no risk of "early stopping".
           | 
           | If you're doing Bayesian analysis and only have say 100
           | visitors, and are using priors, the only situation in which
           | you'll have a strong posterior is when the winning variant is
           | notably superior to the current one. All of the ad hoc rules
           | Frequentists put in place are not necessary when you do
           | proper analysis of your posterior probability that A > B.
           | 
           | Again we see where Bayesian vs Frequentist doesn't really
           | matter for a clinical trials but does for running an A/B
           | test. In a clinical trial you are going to have to plan how
           | many people are involved anyway, so doing a test power
           | calculation makes sense since you'll need some number and
           | that's a good way to get one.
           | 
           | For running an A/B test the bigger problem is usually time
           | not numbers (an exception being email campaigns in which both
           | tend to matter). In the Bayesian setup you if your boss says
           | "I need an answer tomorrow morning" you can take the data
           | you've got, show the probabilities of improvement as well as
           | the distribution of the risks if you're wrong. This allows
           | you to make riskier moves when it makes sense, and be more
           | conservative when it does not. This is something that the
           | out-of-the-box NHST does not allow you.
        
             | clircle wrote:
             | Well, at least in my day job, a very common question is
             | "how much more data do we need to collect?" or "how long
             | will the experiment take?". A response of "The analysis
             | will be Bayesian, so those questions don't apply" is not
             | helpful. Planning matters!
             | 
             | Even a Bayesian with a proper prior can make good guesses
             | about sample sizes, for example, by saying that they have a
             | goal to reduce the length of the 95% credible interval for
             | the most relevant parameter by 80%.
        
             | placidpanda wrote:
             | I am also team bayes for all the reasons you stated, but do
             | want to argue a couple counterpoints:
             | 
             | * While you don't have to have a fixed sample size up
             | front, you can still "cheat" in a bayesian analysis if you
             | peek constantly and end early on promising results that you
             | want to win, and let them run longer otherwise. So you want
             | to do something to account for this (put some structure in
             | place, approach with skepticism, laugh and put on
             | sunglasses, whatever).
             | 
             | * It's very often useful in practice to have some idea of
             | what kind of answer you're going to see in how long for
             | planning reasons -- for example, rather than your boss
             | saying "I need an answer tomorrow" they say "I need an
             | answer as quick as you can". Bayesian methods give you the
             | flexibility to be risky when you need to and accurately
             | count for uncertainty, but sometimes you still need to
             | predict and strategize around ideas like "We'll be about
             | this certain in 2 days, and about this certain in 1 week,
             | and about this certain in 4 weeks and it seems like
             | planning on next Tuesday is the right call"
             | 
             | I've found understanding these frequentist methods to help
             | inform my guesstimates of how experiments will play out
             | with regards to sample size and impact as well as honestly
             | evaluate the trade-offs in evaluating the tests where I
             | wasn't running it -- AB testing is really widespread so I
             | feel like it's important to understand frequentist tests
             | well even if you intend to never use them if you can help
             | it.
        
         | bkfunk wrote:
         | I generally agree about the pros you list of Bayesian, but I
         | think in companies that are doing a lot of experiments and are
         | not just optimizing a checkout page, they don't hold as well.
         | For example, you often are testing out features that really are
         | different from any feature before, and so a prior is harder to
         | get alignment on. There are also frequentist methods like CUPED
         | to mitigate the effect of confounding variables, and then
         | usually you're analyzing the results across user segments so
         | that you can try to look for heterogeneous treatment effects.
         | (FWIW, having analyzed a lot of experiments, I've been
         | surprised at how often there is NOT a heterogeneous treatment
         | effect across user segments; the baselines are often very
         | different, but the direction and general magnitude of the lifts
         | are typically similar. And, the confounder that is most often
         | relevant is simply some broad "engagement" dimension: users who
         | use the product a lot might behave differently from users who
         | do not.)
         | 
         | In my experience, the biggest blocker to using Bayesian
         | approaches has been about data and computation requirements;
         | there are some closed-form solutions (e.g.
         | https://www.evanmiller.org/bayesian-ab-testing.html , also
         | https://www.chrisstucchio.com/blog/2014/bayesian_asymptotics...
         | ) but even those are computationally difficult at scale even if
         | you don't have to do a lot of MCMC sampling.
         | 
         | But what is really interesting to me about your comment is:
         | 
         | > A/B Tests are not really controlled experiments, at least not
         | in the same way clinical trials are. User behavior is always
         | observational even if you have a control group
         | 
         | Could you expand on that? Isn't clinical data also
         | observational: you observe the patient after some time, and see
         | what their symptoms are or what various endpoint measurements
         | are?
        
           | PheonixPharts wrote:
           | > Could you expand on that? Isn't clinical data also
           | observational
           | 
           | Generally in statistics there is a divide between controlled
           | experiments and observational studies. The former is how most
           | medical trials are run and the latter is how most
           | anthropologists work.
           | 
           | In medical trials you can make sure all the demographics,
           | lifestyle differences etc are controlled for before you even
           | start the trial. In the more extreme case of experiments in
           | the physical sciences you can often tightly control for
           | everything involved where the only difference between test
           | and control is precisely the variable of interest.
           | 
           | In anthropology you can't go back in time and say "what if
           | this society had a higher ratio of male/female and didn't go
           | to war?", you can only model what happened and attempt to
           | bake some causal assumptions into your model to see what
           | happened. This is why detailed regression analysis is very
           | important in these fields.
           | 
           | Having a test and control group in your A/B test is not
           | really enough to establish the equivalent of a controlled
           | study of rats in a laboratory, or bacteria in petri dishes.
           | In my experience it really helps to include causal models
           | regarding what you know of your A/B testing population to
           | ensure that what you're observing is really the case. I've
           | had concert examples where it looks like one variant is
           | winning and then checking for the causal assumptions find
           | that we were accidentally measuring something else.
           | 
           | In practice you can reframe all of this into being some sort
           | of ANOVA test and fit it just fine into a classical
           | framework, but I find starting with a Bayesian methodology
           | make the process easier to reason about.
        
       | [deleted]
        
       | tunesmith wrote:
       | What's the difference between power and sensitivity?
        
       | H8crilA wrote:
       | BTW, asking the question "what is the difference between power
       | and significance/p-value" is a good litmus test for detecting
       | insufficient competence in statistics. As the author puts it,
       | unless you know this stuff well you shouldn't really be juding
       | the "scientific" numbers.
       | 
       | In fact you're probably (probably!) better off building a good
       | intuition within the domain and then improvising the tests, in
       | the sense that this way you're less likely to arrive at bogus
       | conclusions, as opposed to someone who thinks they'll just apply
       | some formula like this was a high school maths problem - here we
       | plug in some magic that speaks back the truth. I've seen it time
       | and again that (especially senior) people can rapidly and
       | accurately judge the results of things based on very "un-
       | scientific" improvised methods and numbers. YMMV.
        
         | sokoloff wrote:
         | /me quickly googling "what is the difference between power and
         | significance/p-value?" because I know I lack competence in
         | statistics.
        
           | tel wrote:
           | Broadly, there are two kinds of error: false positives and
           | false negatives. A false positive arises because reality
           | conspired to produce what you consider to be an anomalous
           | result. False negatives arise because your detector wasn't
           | sensitive enough to notice the anomalous result.
           | 
           | The standard statistical practice is to fix your risk of
           | false positives through the preemptive choice of a p-value
           | threshold and then to attempt to minimize your risk of false
           | negatives through increases in the "power" of your
           | experiment. But, honestly, these two are in tension with one
           | another. There are lots of possible choices.
           | 
           | It's important to know the difference, though. It changes how
           | you interpret results. A positive result might be doubted
           | because you, as a reader, would have preferred more
           | protection against false positives, and, thusly, a smaller
           | p-value threshold. A negative result might be doubted because
           | you believe that the experimenter under-powered their
           | experiment. You might also, in a repeating experimental
           | process, wish to obtain greater power by sacrificing false-
           | positive protection. This is as easy as changing the p-value
           | threshold.
           | 
           | A last perspective is that in the typical scientific
           | practice, you basically control false-positives through
           | pushing the p-value down and making the experiment more
           | challenging (reducing power). Then, you re-establish power
           | through more expensive experiments (use better tools, run the
           | experiment for longer, improve controls, improve data
           | efficiency). Often the "typical" p-value is set by the
           | community in relation to what level of false-positive the
           | overall community is willing to tolerate in publication.
           | That's why psychologists are happy with a 5% threshold
           | whereas physicists might seek a threshold of 10^-3 or
           | smaller. The physicists are upholding themselves to a much
           | more expensive experimental standard and would vastly prefer
           | false negatives.
        
         | clircle wrote:
         | Power is a pre-test measure, and a p-value is a post test
         | measure.
        
         | leephillips wrote:
         | All you have to do is ask an author of a paper in medicine or
         | psychology that quotes a p-value to define p-value for you.
         | That will open your eyes if you're not already clued in.
        
       ___________________________________________________________________
       (page generated 2022-04-14 23:03 UTC)