aibizhub
Structured methodology As of 2026-04-24

How A/B Test Significance Calculator works

What the tool assumes, what data it pulls from, and what it cannot tell you.

1. Scope

Runs a two-proportion z-test on binary conversion data and reports p-value, confidence interval, and observed lift. It is not a Bayesian engine and does not correct for peeking, multiple comparisons, or sequential analysis.

2. Inputs and outputs

Inputs

  • controlVisitors number
  • controlConversions number
  • variantVisitors number
  • variantConversions number
  • alpha percent default: 5

    Significance threshold.

Outputs

  • zScore

    Two-proportion z statistic.

  • pValue

    Two-sided p-value.

  • liftPercent

    (variantRate − controlRate) / controlRate.

  • isSignificant

    True iff pValue < alpha.

Engine source: src/lib/ab-test-significance-calculator/engine.ts

3. Formula / scoring logic

p_pooled = (xA + xB) / (nA + nB)
SE       = sqrt(p_pooled * (1 - p_pooled) * (1/nA + 1/nB))
z        = (pB - pA) / SE
p_value  = 2 * (1 - Φ(|z|))

4. Assumptions

  • Samples are independent and randomly assigned.
  • Visitor counts are large enough for the normal approximation (rule of thumb: np ≥ 10 and n(1−p) ≥ 10 in both arms).
  • Two-sided test at a fixed alpha entered up front — no sequential-testing correction.

5. Data sources

6. Known limitations

  • Peeking inflates false-positive rate. Fix the sample size up front or use a sequential-testing method (mSPRT, Bayesian bandit) instead.
  • The folk claim that "90% of A/B tests are inconclusive" has no peer-reviewed source; we do not cite it. Power your experiments to detect a lift you would actually act on.
  • Two-proportion z-test is unreliable for very small counts. For small n, use Fisher's exact test.

7. Reproducibility

Input
A: 5,000 visitors / 250 conversions; B: 5,000 visitors / 300 conversions; alpha = 5%.

Expected output
rateA = 5%, rateB = 6%, z ≈ 2.18, p ≈ 0.029, lift = 20%, significant at α = 5%.

8. Change log

  • 2026-04-24 methodology page first published.
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