update_gamma

Updates Gamma Distribution with the Gamma-Exponential
conjugate prior update rule. Parameterized by \(k\) and \(\theta\) (not \(\alpha, \beta\))

Uses simple Bayesian conjugate prior update rules to calculate
the win probability of each option, value remaining in the test, and
percent lift over the baseline for various marketing objectives.
References:
Fink, Daniel (1997) "A Compendium of Conjugate Priors" <https://www.johndcook.com/CompendiumOfConjugatePriors.pdf>.
Stucchio, Chris (2015) "Bayesian A/B Testing at VWO" <https://vwo.com/downloads/VWO_SmartStats_technical_whitepaper.pdf>.

Ryan Angi

grizbayr

Bayesian Inference for A|B and Bandit Marketing Tests

update_gamma function

<dl><dt>k</dt>
<dd>Double value for \(k\) (total revenue generating events). Must be 0 or greater.</dd>
<dt>theta</dt>
<dd>Double value for \(\theta\) (sum of revenue). Must be 0 or greater.</dd>
<dt>priors</dt>
<dd>An optional list object that contains k0 and
theta0. Otherwise the function will use \(Gamma(1,250)\) as the prior distribution.
If a second gamma distribution is used k01 and theta01 can be defined as separate priors
when alternate_priors is set to TRUE.</dd>
<dt>alternate_priors</dt>
<dd>Boolean Defaults to FALSE. Allows a user to specify alternate
prior names so the same prior isn't required when multiple gamma distributions are used.</dd></dl>

Arguments

Update Gamma — update_gamma

<dl>

<dt>k</dt>
<dd>Double value for \(k\) (total revenue generating events). Must be 0 or greater.</dd>


<dt>theta</dt>
<dd>Double value for \(\theta\) (sum of revenue). Must be 0 or greater.</dd>


<dt>priors</dt>
<dd>An optional list object that contains k0 and
theta0. Otherwise the function will use \(Gamma(1,250)\) as the prior distribution.
If a second gamma distribution is used k01 and theta01 can be defined as separate priors
when alternate_priors is set to TRUE.</dd>


<dt>alternate_priors</dt>
<dd>Boolean Defaults to FALSE. Allows a user to specify alternate
prior names so the same prior isn't required when multiple gamma distributions are used.</dd>

</dl>

update_gamma: Update Gamma

Description

Usage

Value

Arguments

Examples