Huolala Tech

Feb 2, 2024 · Fundamentals

How the Delta Method Improves AB Test Variance Estimation When Units Differ

This article explains why traditional hypothesis‑testing methods can mis‑estimate variance when the splitting unit and analysis unit differ in AB experiments, introduces the Delta Method as an unbiased variance estimator, compares it with Bootstrap and other corrections through simulations and real‑world case studies, and highlights its computational efficiency.