M05-04 · AI + Data & Decision Science

Statistical Analysis and Experimental Design

AI + Data & Decision Science →

Teaches the statistical methods that turn data into defensible business decisions. Covers A/B test design and analysis, hypothesis testing, confidence intervals, regression, and the communication of uncertainty. Emphasizes statistical rigor in practice — knowing when results are real, when they are noise, and how to communicate the difference to stakeholders who want certainty.

35 Hours
8 Learning objectives
Evaluate Bloom's ceiling (?)
5 Competencies

Learning Objectives

Objectives

Depth
  • Design A/B tests with proper experimental methodology: define the metric, set minimum detectable effect (MDE), choose significance threshold (alpha), and calculate required sample size using power analysis Create
  • Conduct hypothesis tests appropriate to data type: chi-squared tests for proportions, t-tests for continuous metrics, Fisher's exact test for small samples, and Mann-Whitney U for non-normal distributions Apply
  • Calculate and interpret confidence intervals for differences between groups, communicating both statistical significance and practical significance to stakeholders Apply
  • Detect common statistical pitfalls in real analyses: multiple testing problems, novelty effects, Simpson's Paradox, survivorship bias, and p-hacking Evaluate
  • Build logistic regression models in Python (scikit-learn/statsmodels) to predict binary outcomes, checking for multicollinearity (VIF), interpreting coefficients, and validating with holdout data Apply
  • Analyze cohort retention curves and segment-level performance differences, identifying whether aggregate results mask meaningful subgroup variation Analyze
  • Communicate uncertainty to non-technical stakeholders using language they trust: ranges instead of point estimates, confidence levels instead of p-values, and explicit caveats on what the data does and does not tell them Apply
  • Evaluate when a rules-based heuristic outperforms a machine learning model given available data volume, feature quality, and interpretability requirements Evaluate

Levels: Remember · Understand · Apply · Analyze · Evaluate · Create — highest demands most original thinking.

What You'll Master

Experimental Design

A/B test setup, power analysis, sample size calculation, randomization, metric selection, and knowing when to stop a test.

Hypothesis Testing

Selecting and executing appropriate statistical tests, interpreting results correctly, avoiding common pitfalls.

Regression & Prediction

Logistic regression, multicollinearity detection, coefficient interpretation, model validation, and knowing when not to use ML.

Cohort & Segment Analysis

Building retention curves, segmenting by meaningful dimensions, detecting subgroup effects hidden in aggregate data.

Uncertainty Communication

Translating statistical results into business language with appropriate confidence levels, caveats, and visual representations (error bars, confidence bands, scenario ranges).

What You'll Build

A/B Test Analysis Report — Student designs and analyzes a realistic A/B test: documents the experimental design (hypothesis, metric, MDE, power analysis, sample size), conducts the statistical analysis (appropriate test selection, confidence intervals, segment breakdowns), identifies at least one statistical pitfall in the data, and writes a stakeholder-facing summary that communicates results with appropriate uncertainty. Includes Python code (statsmodels/scipy) for all statistical computations and visualizations with error bars.

Industry Tools, Not Toy Projects

Python (scipy, statsmodels)

Statistical computing libraries for hypothesis testing, regression, confidence intervals, and power analysis.

scikit-learn

Machine learning library for logistic regression, model validation, and predictive modeling workflows.

pandas / numpy

Data manipulation and numerical computation for preparing datasets and computing statistical measures.

matplotlib / seaborn

Visualization libraries for creating charts with error bars, confidence bands, and statistical annotations.

Jupyter Notebooks

Interactive environment for documenting statistical analyses with code, results, and narrative interpretation.

Claude

AI assistant for statistical concept tutoring, methodology review, and code generation with verification.

Prerequisites

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