I believe in the 10x engineer, but...

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MCMC for marketing data

The other day I was looking at marketing spend broken down by channel and wanted to compute some simple uncertainty estimates. I have data like this:

<th>
  Total spend
</th>

<th>
  Transactions
</th>
<td>
  2292.04
</td>

<td>
  9
</td>
<td>
  1276.85
</td>

<td>
  2
</td>
<td>
  139.59
</td>

<td>
  3
</td>
<td>
  954.98
</td>

<td>
  5
</td>
Channel A
Channel B
Channel C
Channel D

Of course, it’s easy to compute the cost per transaction, but how do you produce uncertainty estimates? Turns out to be somewhat nontrivial. I don’t even think it’s possible to do a t-test, which is kind of interesting in itself.

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