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So what is A/B Testing? A/B testing, also known as Multivariate Testing , Hypotheses Testing and Experimentation, is a tool that helps you make reliable decisions based on data. Imagine you need to make a very important decision in your life, like choosing between a medicine major and a data science major.
One way you could approach this decision-making process is by asking people around for their experiences. But unless you find someone who is extremely similar to you in character and life situation, answers from other people will never help you reach a definitive decision.
In a magical, dystopian world , the most ideal way to see how both decisions would pan out for you and choose the optimal one, is to make hundreds of thousands of copies of yourself and divide them into two groups:
Group A chooses the Medical route
Group B chooses the Data Science path.
This is an example of large scale decision-making in by big companies regarding their products and services. They would have a sample of their userbase that is representative of the larger sample of the whole that will go with option A or Option B.
The idea here is to test if a specific new feature would benefit the company and entire userbase, by showing it only to a certain group first and then choosing the success metrics to evaluate the decision.
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