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Data Preprocessing ​

Before statistical analysis, AB-Labz Workbench automatically processes data to improve result accuracy.

Why Preprocessing is Needed ​

Real experiment data often contains:

  • Outliers - extreme values (for example, a $10,000 order with an average check of $50)
  • Skewness - data heavily shifted in one direction (for example, most orders are $20-50, but there are single orders of $1000+)
  • Noise - random anomalies that distort the picture

Without processing, such data can lead to false conclusions: one buyer with a huge check can "outweigh" hundreds of regular users.

How Analysis Works ​

The system conducts multi-stage analysis of each metric's distribution before choosing a processing method.

Distribution Characteristics ​

Shape measurement:

  • Skewness - determines the direction and strength of data "bias"
  • Kurtosis - evaluates the "heaviness of tails" of the distribution and probability of extreme values
  • Modality - checks for multiple "peaks" in data (bimodal or multimodal distribution)

Spread analysis:

  • IQR (interquartile range) - main measure of data spread between 25% and 75% percentiles
  • CV (coefficient of variation) - relative measure of variability, shows spread relative to mean value
  • Standard deviation - absolute measure of data spread

Outlier detection:

  • Number of outliers beyond 3IQR - extreme values going far beyond normal boundaries
  • Number of outliers beyond 1.5IQR - standard method for detecting anomalies
  • Percentage of extreme values - proportion of data requiring special attention

Additional checks:

  • Presence of zero and negative values
  • Distribution density in different ranges
  • Ratio of median to mean (skewness indicator)

Based on the entire set of these characteristics, the system makes a decision about the most appropriate transformation method.

Transformation Methods ​

Logarithm ​

With strong distribution skewness, heavy tails, and high kurtosis, the system applies logarithmic transformation. Logarithm "compresses" large numbers more than small ones, bringing data to a more symmetric form.

For example, values [10, 15, 20, 500, 1000] become [2.3, 2.7, 3.0, 6.2, 6.9] - now extreme values do not dominate over others. This makes statistical tests more correct and reliable.

3IQR Cleaning ​

When a large number of extreme outliers and anomalous points in distribution tails are detected, the system trims values beyond the normal range.

For example, if in data [50, 55, 60, 65, 9999] the last value is clearly anomalous, it is replaced with the upper normal boundary (for example, 200). This way extreme anomalies do not affect results, but data is not lost.

5% Winsorization ​

With moderate outliers and increased data variability, a softer method is applied. The system replaces 5% of the largest and 5% of the smallest values with the nearest "normal" ones.

For data [1, 5, 10, 15, 20, 25, 30, 1000, 2000], extreme values become [10, 10, 10, 15, 20, 25, 30, 30, 30]. This reduces the influence of outliers while preserving the overall distribution structure.

1% Winsorization ​

This is the default method for relatively stable distributions with minimal deviations. Only 1% of extreme values on each side are replaced - basic protection against rare anomalies that barely touches the data.

For Ratio Metrics ​

For metrics like "revenue per user", the system additionally applies linearization:

Linearized metric = Numerator - θ × Denominator

where θ is the ratio in the control group.

Why: Ratio metrics have a complex distribution (division creates additional skewness). Linearization allows correctly applying statistical tests.

Automatic Selection

You don't need to choose a method manually - the system analyzes each metric and applies the optimal transformation. Information about the applied method is displayed in analysis results.

AB-Labz - Product Experiments Laboratory