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Super Crunchers Assignment 2

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Submitted By conangyq
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What does the Author mean that you can create your own data with the flip of a coin?

Coin flipping is the metaphor of randomized testing. Randomized testing is becoming an important tool for data-driven decision making. Randomization makes sure that two samples identical on every dimension, so we can be confident that any change in the two sample’s outcome is caused by their different treatment.

What was the author trying to illustrate when he mentioned the JoAnn.com discount of 10% on two sewing machines, and the Offermatica graphic example?

The author wants to illustrate the application of randomized test in company. Offermatica shows the way that Super Crunching often exploits technology to shorten the time between data collection, analysis and implementation and conduct multiple tests at once. It also emphasizes the power of testing multiple combinations that it lets companies be bolder. As a conclusion, the power of randomization is about marketing.

The author mentions a method known as Taguchi. Google this term to get more insight on this and write a synopsis of this technique.

Taguchi methods are statistical methods developed by Genichi Taguchi to improve the quality of manufactured goods, and more recently also applied to engineering, biotechnology, marketing and advertising. Professional statisticians have welcomed the goals and improvements brought about by Taguchi methods, particularly by Taguchi's development of designs for studying variation, but have criticized the inefficiency of some of Taguchi's proposals.

Give your thoughts about the number of tests run by Captial One in 2006. Is it possible for one company to do this much testing?

I think it’s possible. In fact ,Captial One has been running randomized tests for a long time. Way back in 1995, it ran an even larger experiment by generating a mailing list of 600,000

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