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MindsetRonny Kohavi (Airbnb, Microsoft, Amazon)

False Positive Risk and the Replication Protocol

A p<0.05 win can be 26% likely false when idea success rates are low — replicate borderline results

Difficulty
Expert
Time to result
~weeks to results
Steps
4
Confidence
93%

Most people misread a p-value as the probability the treatment is better, which is wrong. Because a p-value is conditional on the null hypothesis, the real quantity you want — false positive risk — depends on your prior success rate and can be far above 5%. When idea success rates are low, statistically significant results must be replicated before you trust them.

Origin

Kohavi's application of Bayesian false-positive-risk reasoning to online experiments, with the Airbnb 26% figure drawn from his published work.

Core principles

  • 01One-minus-p-value is NOT the probability the treatment beats control — that's the most common and incorrect interpretation
  • 02A p-value assumes the null hypothesis is true and gives the probability of the data under it
  • 03To get what you want you must invert with Bayes' rule, which requires a prior: the base rate that ideas succeed
  • 04With a low success rate (Airbnb search ~8%), a p<0.05 win carries ~26% false-positive risk, not 5%
  • 05Lowering the required p-value and replicating borderline results drives false-positive risk far down

How to run it

  1. 1

    Estimate your prior success rate

    Use historical data on how often your ideas actually win (e.g. two-thirds fail, or 92% fail in a mature domain) as the prior.

    Pro tip Keeping a running record of your historical win rate is what makes this calculation possible.

  2. 2

    Compute false positive risk, not raw p-value

    Combine the prior with the p-value to get false-positive risk — the actual chance a significant result is spurious.

    Pro tip At an 8% success rate, a p<0.05 result is ~26% likely to be a false positive.

    Watch out Reporting only the p-value badly overstates how sure you should be.

  3. 3

    Replicate borderline significant results

    When p is between 0.01 and 0.05, re-run the experiment instead of shipping on the first result.

    Watch out Don't broadcast a borderline win as institutional knowledge until it's replicated.

  4. 4

    Combine experiments for a joint p-value

    Merge the original and replication using Fisher's or Stouffer's method to get a joint probability, which is usually far lower.

    Pro tip Requiring p<0.01 plus replication makes shared 'wins' genuinely trustworthy.

In the wild

Airbnb's 26% false-positive reality

At Airbnb search where only ~8% of ideas succeeded, a statistically significant result at p<0.05 carried a 26% chance of being a false positive, so the team required borderline results (0.01-0.05) to be replicated and combined.

Combining replicated experiments produced much lower joint p-values, making declared wins reliable enough to enter institutional knowledge.

Common mistakes

Reading 1-minus-p as probability treatment wins

A p=0.02 result does not mean 98% chance the treatment is better; the p-value is conditional on the null, so this interpretation vastly overstates confidence.

Shipping borderline significant results without replication

When base success rates are low, a single p<0.05 win can be ~26% spurious, so publishing it as a proven success pollutes institutional learning.

Is it for you?

Best for

Data scientists and PMs who report experiment outcomes and want calibrated confidence

Not ideal for

High-throughput low-stakes optimization where the cost of an occasional false positive is negligible

From the transcript

many people assign one minus p-value as the probability that your treatment is better than control ... that is wrong

1:02:30

if you get a statistically significant result with the p-value less than 0.05 there's a 26 percent chance that this is a false positive result

1:04:30

if you're less than 0.05 but above 0.01 rerun replica when you replicate you can combine the two experiments and get a combined p-value

1:04:30

From the episode

The ultimate guide to A/B testing

Ronny Kohavi (Airbnb, Microsoft, Amazon)