Power calculations with a costly treatment

Interactive power analysis for advertising experiments etc.

Setup

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▴ Advanced settings
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True average treatment effect (ATE)
True ROI

Detecting Any Effect of Ads

ATE / SD (i.e. Cohen’s d)
Required n per group for target power
Rule of thumb (16/d²)

Your Experiment

Treatment
Control

Detecting any effect

Power for testing the null of no effect (i.e. ROI = -100%).

Power with your n
Minimum detectable effect (MDE) with your n

Estimating ROI

SE of treatment effect
SE of ROI estimate
95% CI width for ROI
Power to detect ROI > 0

Even if we can detect some effect of ads, we often need a larger experiment size to get a precise ROI estimate.

Power Curve