Understanding CUPED

An in-depth guide to the state-of-the-art variance reduction technique for A/B tests

During my Ph.D., I spent a lot of time learning and applying causal inference methods to experimental and observational data. However, I was completely clueless when I first heard of CUPED (Controlled-Experiment using Pre-Experiment Data), a technique to increase the power of randomized controlled trials in A/B tests.

What really amazed me was the popularity of the algorithm in the industry. CUPED was first introduced …

a/b testing causal inference data science deep-dives statistics understanding