Quote:
Originally Posted by ADL Colin
(Post 14218433)
As this page says - "Under the conditions where the Poisson distribution is applicable, the standard deviation may be approximated by the square root of the mean." Is it the word "approximately" you felt is missing? Or maybe you would prefer "mean" over "average" but I think most people would understand average better.
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A mean is not the same as an average Colin.
Other than that, you're confusing lambda with k. in my formula, or e and m in yours, or a and x in the formula on this latest page you quote.
Let's get them clear :
lambda, e and a equal the EXPECTED number of occurences. Thus, for 1:100 conversions, and 900 clicks, lamba, e and a equal 9.
k, m and x equal the ACTUAL number of occurences. Thus, that'd be the number of actual sign-ups.
Now, the standard deviation, which is the root of the the variance, can be approximated as the square root of the mean of lamba, e or a, depending on which formula you use.
Which makes it the square root of the number of expected signups, not actual signups, as contrary to
Quote:
In the Poisson Distribution the error is simply the square root of the average. In other words, the error is the square root of the number of signups.
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Much more interesting are the points you don't answer to, namely
1. The false statement that signup probability is independent of the number of visitors,
2. The false statement that one should not think "I'll send X visitors" but instead "I'll send X sign-ups"
The entire point of using this math is to establish how many visitors to send, and under which feedback conditions.
And while you claim math can not make a decission for you, that is only because you don't quite know how to use it.
Properly applied, this bit of math will tell you, after having sent x visitors, if it's worth trying to send k more, or not.