Category Archives: Behavioral Economics

Bayesian A/B-testing, part II

Continuing my example by examining how the different assumptions – yes, in any model there are always assumptions, explicit or implicit – of the model impact the end result, that is, the prediction of the sought after signup-rate, a.k.a our posterior … Continue reading

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A/B-testing with Bayesian Inference

The example Inspired by Rasmus Bååth’s lectures on Bayesian Inference, I’ve implemented a simple Python example demostrating how Bayesian Inference can be used for A/B-testing, that is, evidence based testing. This methodology, i.e. A/B-testing, is useful in most domains, e.g. … Continue reading

Posted in A/B Testing, Bayes, Behavioral Economics, Big Data, Data Analytics, Data Driven Management, Math, Numpy, performance, Probability, Pystan, Python, Simulation, STAN, Statistics | Tagged , , , , , , , , , , , | Leave a comment

The bat and the ball…

A classic from Behavioral Economics: “A bat and a ball together cost 1.10$. The bat costs 1$ more than the ball. How much does the ball cost?” The BE-guys have found that most people get this wrong. For the mathematically … Continue reading

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