Track 11 · Experiments and A/B Testing · Lesson 2 of 14

Randomisation and units

Choose the unit of randomisation for an experiment, analyse at a matching unit, and explain how correlated observations and interference distort the results.

30 minIntermediate8 graded exercisesMembers

An analyst randomises users to two checkouts but counts every session as an independent observation. The p-value comes out at 0.03 and the change ships — yet the evidence was much weaker than it looked. Getting the unit right is the first thing an experienced reviewer checks.

Every experiment has a unit of randomisation: the thing the coin is flipped for. Common choices are the user (or account, or device), the session, the page view, or a whole cluster such as a store, a city or a time window.

It also has a unit of analysis: the thing each row of your analysis represents. The safe rule is simple: analyse at the unit you randomised (or use a method that accounts for the grouping).

Included with a Formula Quest membership

It has 8 graded exercises with feedback, hints and worked solutions. After it you will be able to:

  • Choose user, session or cluster randomisation for a given change
  • Calculate a design effect and an effective sample size
  • Explain why analysing below the randomisation unit understates variance
  • Recognise interference and when to randomise clusters
  • Use blocking to balance a strong known predictor when units are few