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Conversion & funnels

Bayesian A/B testing

Bayesian A/B testing treats the conversion rate of each arm as an unknown with a probability distribution. It combines a prior belief with observed data to produce a posterior, from which you can state things like 'the probability that B beats A is high' and quantify the expected loss of choosing wrong. It is an alternative framing to the frequentist p-value, with different assumptions rather than a guarantee of more truth.

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What this means

In the Bayesian framing, each arm's true conversion rate is unknown and described by a probability distribution. You start with a prior (a belief before data, often deliberately weak), update it with the observed conversions and exposures, and get a posterior distribution per arm. From the posteriors you can compute the probability that one arm exceeds another and the expected loss of picking the apparent winner if it turns out to be wrong.

How it differs from frequentist tests

A frequentist test asks how surprising the data would be if there were no difference, and returns a p-value and confidence interval. A Bayesian test asks, given the data and a prior, what is the probability of each hypothesis. The Bayesian answer is the one most people intuitively want, but it requires choosing a prior, and a strong prior can dominate small samples.

Neither framing removes the need for an adequate sample size or for stable, well-defined metrics. Both can mislead if you stop the moment a threshold is crossed.

How it appears in analytics and logs

A posterior probability that B beats A, or an expected-loss figure, tells you how confident the data and prior make you — not a binary significant/not-significant verdict. It still depends on the prior and the model being reasonable.

Diagnostic use case

Use Bayesian analysis when you want a directly interpretable probability that a variant is better, and an expected-loss estimate to bound the risk of the decision.

What WebmasterID can help detect

WebmasterID measures the first-party conversion and exposure events that feed either a Bayesian or a frequentist analysis; the method is a choice you make on top of the same counts.

Common mistakes

Privacy and accuracy notes

Bayesian testing operates on aggregate counts of conversions and exposures, not personal profiles. This page is educational, not statistical consulting.

Related pages

Sources and verification notes

Last reviewed 2026-06-24. Facts are checked against primary/official sources where available; uncertain specifics are marked “Data not yet verified” rather than guessed.