Experimentation Variance Reduction
Variance Reduction Below the Randomization Grain

Variance Reduction Below the Randomization Grain

7/1/2026 · Tilman Drerup

What this post added

Developed and implemented an 'Order-Level CUPED' methodology that trains an order-level prediction model using pre-treatment features. These predictions are then aggregated to the region-day grain, serving as the covariate in the CUPED adjustment. This method demonstrated a 18-40% variance reduction, leading to an average one-third reduction in experiment runtimes, compared to standard region-day CUPED.

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