Alp SuleimanGrowth Partner

Statistical Power

The probability that an experiment detects an effect that really exists. It depends on sample size, the metric's variance and the smallest effect you want to see; Kohavi, Deng and Vermeer's rule of thumb is n = 16σ²/δ² users per variant (95 percent confidence, 80 percent power).

Growth ConceptsTerm 80 / 81

Formula

Users per variant ≈ 16 × σ² ÷ δ²; for conversion σ² = p(1−p), δ = p × relative effect

In practice

A low-powered experiment does not only miss effects; it also makes significant results less trustworthy. Kohavi's table: when 10 percent of experiments truly win and power drops from 80 to 20 percent, 52.9 percent of significant results are false positives. For a low-traffic product the lesson is simple: fewer, bigger experiments rather than more (our reading). The Experiment Capacity tool runs this calculation for your own traffic.

Sources

  1. 1.Kohavi, Deng, Vermeer: A/B Testing Intuition Busters, KDD 2022

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