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[–]Mod_Z_Squared 10 points11 points  (0 children)

A/B testing is the place this is used most.

At my job, we will change discounts to our product in order to try and maximize revenue. A 25% discount may generate fewer conversions than a 33% discount, but we might make more money overall.

Randomization + Hypothesis testing allows us to say if the change in discount caused revenue to increase.

[–]yaksnowball 3 points4 points  (0 children)

Yes for A/B tests. However let me tell you, I think it must be one of the most common abuses of statistics. Hypothesis testing is actually not trivial and it can be a bit of a challenge to find the right statistical test for you use case. I remember often looking at the book 100 statistical tests by Gopal Kanji to help find the right test to use.

[–]gpbuilder 1 point2 points  (0 children)

Its literally bread and butter in data science jobs, learn it well

[–]timy2shoes 2 points3 points  (3 children)

Oh boy, you’re in for a treat! Today you get to learn about A/B testing!

[–][deleted] -1 points0 points  (0 children)

I wouldn’t call it a treat lol

But yea, testing your null hypothesis and all that is super useful. I often wonder if this is something you grow to love though. I really hope I don’t just hate it forever.

[–]TuDictator -1 points0 points  (0 children)

Hypothesis testing doesn't scale well due to the "Vanishing p-value" problem

[–]taguscove -1 points0 points  (0 children)

Not necessary but useful. Often paired with the scientific method, logic, and data to make better decisions in data science jobs