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Minimum Detectable Effect

The smallest improvement in a metric that an experiment is designed to reliably detect with a given level of statistical power and significance, determining the practical sensitivity of the test.

The minimum detectable effect (MDE) defines the threshold of change your experiment can reliably identify. If your MDE is 5%, the experiment will detect a true improvement of 5% or larger but will likely miss smaller real effects. MDE is inversely related to sample size: detecting smaller effects requires more users and longer experiment duration.

For growth teams, MDE is the critical bridge between statistical requirements and business decisions. AI can help determine appropriate MDEs by modeling the business impact of different effect sizes and recommending the MDE that balances experiment duration against the value of detecting smaller improvements. Growth engineers should set MDE based on the minimum improvement that would justify the engineering cost of implementing the change permanently. If a 1% conversion improvement would generate significant revenue, the experiment needs enough users to detect a 1% change, which might require weeks of testing. If only improvements above 5% would be worth implementing, a shorter test with larger MDE is appropriate. Teams should document the MDE for every experiment and acknowledge that non-significant results mean the true effect is smaller than the MDE rather than that there is no effect at all.

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