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Learn Challenge: Error Type Identification | Statistical Foundations for A/B Testing
A/B Testing with Python
Section 3. Chapter 4
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Challenge: Error Type Identification

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When you conduct an A/B test, your goal is to determine whether a new variant (B) is truly different from the control (A) based on the data you collect. However, your conclusion can be incorrect for two main reasons: you might detect a difference when there is none (Type I error, or "false positive"), or you might miss a real difference (Type II error, or "false negative"). To identify which error - if any - has occurred, you must compare the real-world truth (whether a true effect exists) with the outcome of your statistical test (whether you declared a significant effect).

If your test finds a significant result when no real effect exists, you have made a Type I error. If your test fails to find a significant result when a real effect does exist, you have made a Type II error. If your conclusion matches the reality (either correctly detecting a real effect or correctly concluding there is none), you have made a correct decision. Understanding these scenarios is crucial for interpreting the practical implications of your tests and for making informed business decisions based on your findings.

Task

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Given the true underlying effect of a variant (true_effect) and the observed outcome of your statistical test (observed_significance), classify the result as either a correct decision, a Type I error, or a Type II error.

  • Return "Correct Decision" if the observed significance matches the true effect.
  • Return "Type I Error" if a significant result is observed when there is no true effect.
  • Return "Type II Error" if no significant result is observed when there is a true effect.

Solution

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Section 3. Chapter 4
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