Improved Randomized Testing for More Accurate Results for Companies

Chicago Booth principal researcher David Puelz talks about how companies can improve randomized testing or randomized control trials to better understand the effect of a new strategy.

With big data, it is increasingly the norm for companies to use experimentation in order to narrow down on the most suitable business strategies. Whether that strategy might be increasing production, increasing customer engagement, multiplying the customer base, or something else. The most effective way to arrive at this decision is through randomized control trials.

But this doesn’t give the desired results due to the possibility of interference. David Puelz and his coauthors have created a new method to help scientists take interference into consideration so that the final results of randomized testing are less skewed and more accurate.