Monday, 4 March 2019

Bounds on Bayes Factors for Binomial A/B Testing. (arXiv:1903.00049v1 [stat.OT])

Bayes factors, in many cases, have been proven to bridge the classic -value based significance testing and bayesian analysis of posterior odds. This paper discusses this phenomena within the binomial A/B testing setup (applicable for example to conversion testing). It is shown that the bayes factor is controlled by the \emph{Jensen-Shannon divergence} of success ratios in two tested groups, which can be further bounded by the Welch statistic. As a result, bayesian sample bounds almost match frequentionist's sample bounds. The link between Jensen-Shannon divergence and Welch's test as well as the derivation are an elegant application of tools from information geometry.



from cs updates on arXiv.org https://ift.tt/2IZ3rHc
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