A/B & Multivariate Testing

Confidence Intervals Explained

Confidence intervals turn a single sample estimate into a range that likely captures the true value. Mastering them prevents over‑confidence in noisy A/B test data..

What does a 95% confidence interval for a sample mean claim?

The sample mean equals the true mean 95% of the time

We are 95% confident the interval contains the true mean

There is a 95% chance the sample mean is correct

95% of individual data points fall in the interval

Confidence refers to the long‑run success rate of the method, not probability about one specific interval.

Narrower confidence intervals generally result from ______.

lower confidence levels

larger sample sizes

shorter experiment duration

higher variance data

More observations shrink standard error, tightening the interval around the point estimate.

If a 90% CI for lift excludes zero, the result is ______ at the 10% level.

practically insignificant

biased upward

statistically significant

over‑fit

Zero outside the interval means the null of no effect would be rejected at alpha = 0.10.

Increasing the confidence level from 90% to 99% makes the interval ______.

remain unchanged

wider

shift upward

narrower

Higher confidence needs more margin for error, so bounds move outward.

For proportions, Wilson intervals outperform Wald intervals because they ______.

assume normality of raw counts

require Bayesian priors

ignore variance

maintain coverage even near 0 or 1

Wilson’s adjustment keeps tails realistic when event rates are extreme.

Bootstrapped confidence intervals rely on ______ sampling of the observed data.

Latin hypercube

importance

systematic without replacement

resampling with replacement

Bootstrapping rebuilds many pseudo‑samples by drawing the original rows repeatedly.

A confidence interval that overlaps the business minimum detectable effect may still be useful because it ______.

removes all variance

confirms the null

guarantees ROI

quantifies uncertainty around the lift estimate

Even overlapping intervals inform how likely real‑world impact meets the target.

Which statistic is at the center of a two‑sided CI for an A/B difference in means?

the pooled standard deviation

the median difference

the observed difference between variant means

zero

Intervals are built symmetrically around the point estimator.

When sample size is small and variance unknown, confidence intervals use the ______ distribution.

t‑

chi‑square

normal

F

The t‑distribution compensates for extra uncertainty in the standard error.

The term ‘coverage probability’ for a CI describes ______.

the chance any interval overlaps others

how often intervals from repeated samples contain the true value

percent of data within one SD

page‑view reach

Coverage is a property of the method across infinite repetitions, not one interval.

Starter

Solidify the basics of the topic before running live tests.

Solid

You understand the core ideas—focus on edge‑cases to boost accuracy.

Expert!

Outstanding—you can teach your team and steer experimentation strategy.

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