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# The effect distribution: The missing piece in experimentation programs

**[Datadog](https://daily.dev/sources/datadog)** · 8 min read · 0 upvotes · 0 comments

## Summary

Experimentation programs can appear rigorous while still producing misleading results if teams ignore the effect distribution — the distribution of true effects across all experiments. When only 5% of experiments show significance, that matches the false positive rate alone, meaning every win could be noise. The post explains how observed effects overestimate true effects due to sampling error, introduces the Expected Value of Sample Information (EVSI) framework to quantify what experiments are actually worth, and shows how estimating separate effect distributions per product category can guide resource allocation. References to Netflix's work on optimal p-value thresholds and the A/B Testing Intuition Busters paper round out the strategic framing.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://www.datadoghq.com/blog/effect-distribution-in-experimentation>

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---

Tags: [#devops](https://daily.dev/tags/devops), [#ab-testing](https://daily.dev/tags/ab-testing), [#statistical-analysis](https://daily.dev/tags/statistical-analysis)

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