← Every exhibit
Why must advertising measurement design begin with commercial decision thresholds?
| Test field | Question | Why it matters |
|---|---|---|
| Decision | Which action will change if the evidence moves? | Without an action, precision has no stated use. |
| Minimum relevant effect | How large must the difference be to matter? | A statistically detectable effect can be commercially immaterial. |
| Variance | How noisy is the outcome under the design? | More observations help differently at different noise levels. |
| Power | What probability of detecting the relevant effect is needed? | The test should be sized around the effect that matters. |
| Observation cost | What does another observation or longer follow-up require? | Information has time, attention, and opportunity costs. |
| Action threshold | At which result does the recommendation change? | The threshold converts an estimate into a decision rule. |
| Permitted statement | What can the evidence support? | A test result is not automatically a universal marketing rule. |
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Reference & Evidence
Source: Table from this essay. Sources and interpretation are given in the article.
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