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  1. data/.gitignore +17 -0
  2. data/Gemfile +4 -0
  3. data/LICENSE +22 -0
  4. data/README.md +10 -0
  5. data/Rakefile +13 -0
  6. data/bin/charles +23 -0
  7. data/charles.gemspec +25 -0
  8. data/lib/charles/document.rb +177 -0
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  14. data/optimise.rb +72 -0
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+ Most marketing people have only a passing interaction with statistics, and often times only understand it as a measure of how it has impacted their daily life. One of the funny things people don�t realize is that there are two completely different competing schools of thought when it comes to statistics. Most people are familiar with frequentist statistics, having dealt with things like normal distribution, bell curves, and established probabilities. The other school, Bayesian statistics, is a realm that fewer people are familiar with, but just as applicable. In fact, the move over the last few years is for more people to change from the frequentist model to Bayesian techniques.
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+ So what is Bayesian statistics? To put simply, Bayesian analysis is the use of conditional or evidential probabilities. It looks at what you know of the environment and past knowledge, and allows you to infer probabilities based off of that data. It asks what is the likelihood of something happening based on our knowledge of past conditions and the context of them in the world. Where frequintist statistics can be viewed as much more of a evaluation of the larger data collection and judging the chances of something happening again based off of those results, Baysian is about the likelihood a set of results reflects the larger reality and about making inference based on the limited data set.
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+ Whereas a frequentist model looks at an absolute basis for chances, something like the population of females is 52%, so that means that if I select someone at random from my office, I have a 52% chance of picking a female. The chances are purely based on the total probability. The Bayesian approach is to rely on past knowledge and then adjust accordingly. If I know that 75% of my office is male, and I grab a person, then I know that I have a 25% chance of picking a female.
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+ So is it 52% or 25%? Both are correct answers depending on what question you are really asking, but both look at things differently. Frequentists look at the larger perspective of all chances, and base things off that ideal look at the world. Bayesian users use much more personal or past knowledge to infer information. Bayesian thinkers would much rather answer what are the chances that the total population is 52% female based on the fact that only 25% are female in this office. The risk with using Bayesian logic is that you are allowing for bias and poor data collection to dramatically later how you view things. The gain is that while frequentist will often be right in a controlled setting and over time, Bayesian has the chance to give you better information based on what you know. Bayesian logic also allows you to do conditional logic statements, like based on the office scenario before and a little bit more contextual knowledge, you can answer �what is the likelihood that if you choose a women that she would have blond hair?�. Bayesian techniques are often used for logic reasons, because it allows you to make a conclusion about the likelihood something is the best answer based on what you know. Both techniques are at risk for black swan type of analysis, though Bayesian analysis can be even more influenced by only focusing on the known.
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+ So why is this important? All testing tools and models are almost always relying on frequentist techniques to give you the global view of something as to how often it fits into a pattern. This is why you see things like 92% confidence when evaluating things, we know that under similar circumstances, 92% of the sample means will fit into that window. Those techniques give you answers in an ideal situation and over time, but that may not be true of specific periods or non normal events. They don�t take into account the context of this specific situation, nor prior history relevant specifically to the situation. They often times don�t take into account even the contextual knowledge of the other recipes and information contained in that same test. They might be true of normal circumstances, but not of a special sale or seasonal activity. Bayesian techniques rely on prior knowledge that for testing is rarely available, and for analytics is problematic at best. They might reflect special circumstances, but not give a good long term view due to those same mitigating circumstances.
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+ In all cases, nothing will replace understanding the context of what your data tells you, the patterns of it, and knowing how and when to act. You have to appreciate what the statistics are telling you, but also appreciate what they aren�t telling you. Any overt belief in a measure, by itself is always going to be problematic. Just getting a statistical answer is not a replacement for the context and the environment by which you are gathering data, nor making a decision. You can not have blind faith in stats to replace your own ability to reason, nor can you you blindly believe that all laboratory statistics properly reflect real world situations.
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+ No matter what techniques you use, no matter which camp you are in for the correct way to look at things, there is never a time when you can ignore the problems of any single type of analysis. You can not replace using discipline and logic in your actions. Statistics are just a tool, they can not replace proper reasoning, yet too many people look at it as a magical panacea to remove responsibility for action. Always remember that there are multiple ways to look at a problem, let alone hundreds of ways to solve it. Figuring out the efficient and best way for you is the real key.
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+ <span class="previous"><a href="http://blogs.adobe.com/digitalmarketing/personalization/conversion-optimization/adobe-digital-marketing-conversion-all-star-adam-crutchfield-of-axcess-financial/" rel="prev">Adobe Digital Marketing Conversion All-Star: Adam Crutchfield of Axcess Financial</a></span>
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+ <span class="next"><a href="http://blogs.adobe.com/digitalmarketing/industries/media-and-entertainment/avoid-local-maximums-test-for-best-not-better/" rel="next">Avoid Local Maximums: Test For Best, Not Better</a></span>
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+ <div class="clear"></div></div></section><section id="postloop" class="copy postnav-postloop postloop-comments"><div class="copy-pad"><article class="post-5854 post type-post status-publish format-standard hentry category-conversion-optimization fpost post-number-1" id="post-5854"><div class="hentry-pad "><section class="post-meta fix post-nothumb "><section class="bd post-header fix " ><section class="bd post-title-section fix"><hgroup class="post-title fix"><h1 class="entry-title">Understand the Math Behind it All: Bayesian Statistics</h1>
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+ </hgroup><div class="metabar"><div class="metabar-pad"><em><span class="categories sc"><a href="http://blogs.adobe.com/digitalmarketing/category/personalization/conversion-optimization/" title="View all posts in Conversion Optimization" rel="category tag">Conversion Optimization</a></span> &middot; By <span class="author vcard sc"><span class="fn"><a href="http://blogs.adobe.com/digitalmarketing/author/andrew-anderson/" title="Posts by Andrew Anderson" rel="author">Andrew Anderson</a></span></span> On <time class="date time published updated sc" datetime="2012-05-21T10:30:58.000000+00:00">May 21, 2012</time> &middot; <span class="post-comments sc"><a href="http://blogs.adobe.com/digitalmarketing/personalization/conversion-optimization/understand-the-math-behind-it-all-bayesian-statistics/#comments"><span class="dsq-postid" rel="5854 http://blogs.adobe.com/digitalmarketing/?p=5854">Leave a Comment</span></a></span> </em></div></div></section> </section></section><div class="entry_wrap fix"><div class="entry_content">
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+ <!-- AddThis Button Begin -->
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+ <script type="text/javascript">var addthis_product = 'wpp-264';
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+ var addthis_config = {"data_track_clickback":false,"data_track_addressbar":false};if (typeof(addthis_share) == "undefined"){ addthis_share = {"templates":{"twitter":"{{title}} {{url}} via @AdobeDigMktg"},"url_transforms":{"shorten":{"twitter":"bitly"}},"shorteners":{"bitly":{"login":"chwarren","apiKey":"R_2dc512fa61026464ab346a879adf2a77"}}};}</script><script type="text/javascript" src="//s7.addthis.com/js/250/addthis_widget.js#pubid=ra-4f09a9be5db9675c"></script><div id="getsocialmain"><div id='nr_fo_top_of_post'></div><p>Most mar�ket�ing peo�ple have only a pass�ing inter�ac�tion with sta�tis�tics, and often times only under�stand it as a mea�sure of how it has impacted their daily life. One of the funny things peo�ple don�t real�ize is that there are two com�pletely dif�fer�ent com�pet�ing schools of thought when it comes to sta�tis�tics. Most peo�ple are famil�iar with fre�quen�tist sta�tis�tics, hav�ing dealt with things like nor�mal dis�tri�b�u�tion, bell curves, and estab�lished prob�a�bil�i�ties. The other school, Bayesian sta�tis�tics, is a realm that fewer peo�ple are famil�iar with, but just as applic�a�ble. In fact, the move over the last few years is for more peo�ple to change from the fre�quen�tist model to Bayesian techniques.</p>
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+ <p>So what is Bayesian sta�tis�tics? To put sim�ply, Bayesian analy�sis is the use of con�di�tional or evi�den�tial prob�a�bil�i�ties. It looks at what you know of the envi�ron�ment and past knowl�edge, and allows you to infer prob�a�bil�i�ties based off of that data. It asks what is the like�li�hood of some�thing hap�pen�ing based on our knowl�edge of past con�di�tions and the con�text of them in the world. Where fre�quin�tist sta�tis�tics can be viewed as much more of a eval�u�a�tion of the larger data col�lec�tion and judg�ing the chances of some�thing hap�pen�ing again based off of those results, Baysian is about the like�li�hood a set of results reflects the larger real�ity and about mak�ing infer�ence based on the lim�ited data set.</p>
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+ <p>Whereas a fre�quen�tist model looks at an absolute basis for chances, some�thing like the pop�u�la�tion of females is 52%, so that means that if I select some�one at ran�dom from my office, I have a 52% chance of pick�ing a female. The chances are purely based on the total prob�a�bil�ity. The Bayesian approach is to rely on past knowl�edge and then adjust accord�ingly. If I know that 75% of my office is male, and I grab a per�son, then I know that I have a 25% chance of pick�ing a female. </p>
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+ <p>So is it 52% or 25%? Both are cor�rect answers depend�ing on what ques�tion you are really ask�ing, but both look at things dif�fer�ently. Fre�quen�tists look at the larger per�spec�tive of all chances, and base things off that ideal look at the world. Bayesian users use much more per�sonal or past knowl�edge to infer infor�ma�tion. Bayesian thinkers would much rather answer what are the chances that the total pop�u�la�tion is 52% female based on the fact that only 25% are female in this office. The risk with using Bayesian logic is that you are allow�ing for bias and poor data col�lec�tion to dra�mat�i�cally later how you view things. The gain is that while fre�quen�tist will often be right in a con�trolled set�ting and over time, Bayesian has the chance to give you bet�ter infor�ma�tion based on what you know. Bayesian logic also allows you to do con�di�tional logic state�ments, like based on the office sce�nario before and a lit�tle bit more con�tex�tual knowl�edge, you can answer �what is the like�li�hood that if you choose a women that she would have blond hair?�. Bayesian tech�niques are often used for logic rea�sons, because it allows you to make a con�clu�sion about the like�li�hood some�thing is the best answer based on what you know. Both tech�niques are at risk for <a href="http://www.amazon.com/Black-Swan-Nassim-Nicholas-Taleb/dp/1400063515">black swan</a> type of analy�sis, though Bayesian analy�sis can be even more influ�enced by only focus�ing on the known.</p>
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+ <p>So why is this impor�tant? All test�ing tools and mod�els are almost always rely�ing on fre�quen�tist tech�niques to give you the global view of some�thing as to how often it fits into a pat�tern. This is why you see things like 92% con�fi�dence when eval�u�at�ing things, we know that under sim�i�lar cir�cum�stances, 92% of the sam�ple means will fit into that win�dow. Those tech�niques give you answers in an ideal sit�u�a�tion and over time, but that may not be true of spe�cific peri�ods or non nor�mal events. They don�t take into account the con�text of this spe�cific sit�u�a�tion, nor prior his�tory rel�e�vant specif�i�cally to the sit�u�a�tion. They often times don�t take into account even the con�tex�tual knowl�edge of the other recipes and infor�ma�tion con�tained in that same test. They might be true of nor�mal cir�cum�stances, but not of a spe�cial sale or sea�sonal activ�ity. Bayesian tech�niques rely on prior knowl�edge that for test�ing is rarely avail�able, and for ana�lyt�ics is prob�lem�atic at best. They might reflect spe�cial cir�cum�stances, but not give a good long term view due to those same mit�i�gat�ing circumstances. </p>
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+ <p>In all cases, noth�ing will replace under�stand�ing the con�text of what your data tells you, the pat�terns of it, and know�ing how and when to act. You have to appre�ci�ate what the sta�tis�tics are telling you, but also appre�ci�ate what they aren�t telling you. Any overt belief in a mea�sure, by itself is always going to be prob�lem�atic. Just get�ting a sta�tis�ti�cal answer is not a replace�ment for the con�text and the envi�ron�ment by which you are gath�er�ing data, nor mak�ing a deci�sion. You can not have blind faith in stats to replace your own abil�ity to rea�son, nor can you you blindly believe that all lab�o�ra�tory sta�tis�tics prop�erly reflect real world situations.</p>
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+ <p>No mat�ter what tech�niques you use, no mat�ter which camp you are in for the cor�rect way to look at things, there is never a time when you can ignore the prob�lems of any sin�gle type of analy�sis. You can not replace using dis�ci�pline and logic in your actions. Sta�tis�tics are just a tool, they can not replace proper rea�son�ing, yet too many peo�ple look at it as a mag�i�cal panacea to remove respon�si�bil�ity for action. Always remem�ber that there are mul�ti�ple ways to look at a prob�lem, let alone hun�dreds of ways to solve it. Fig�ur�ing out the effi�cient and best way for you is the real key.</p>
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+ PETALING JAYA: Computer game soundtracks are as recognisable as movie scores these days and have garnered a huge following of fans.
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+
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+ Where once a videogame score was just a potpourri of cheesy tunes and sound effects, these now comprise orchestral strains and can qualify as audio masterpieces in their own right.
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+
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+ �The soundtrack is an integral part of the action in a videogame,� said music composer Tommy Tallarico.
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+
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+ He is also the creator, executive producer and host of Video Games Live (VGL) � a concert tour featuring videogame music compositions � at Istana Budaya yesterday and today.
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+
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+ Tallarico � who is a cousin of Aerosmith frontman and American Idol judge Steven Tyler � was speaking at an interview on The Red Zone, a radio show by RedFM on Thursday.
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+
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+ He believes that more videogame players can hum the soundtrack of their favourite game than there are those who can hum the soundtrack of their favourite movie.
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+
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+ �This is because people usually spend about two hours to watch a movie but videogamers invest about 30 to 40 hours of playing time with a computer game,� he said.
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+
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+ Tallarico is in the 2008 Guinness Book of Records for being the most prolific videogame music composer. He has 275 game soundtracks � and counting � to his credit, including classics such as Earthworm Jim and the original Prince of Persia.
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+
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+ Also in the studio was Norihiko Hibino, a composer and saxophonist, who composed most of the Metal Gear Solid game soundtracks and, recently, the soundtrack for Bayonetta.
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+
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+ Tallarico got involved in the industry when on his first day of selling electronic keyboards at a music store in the 1990s, his first customer, who happened to be a game producer, had noticed his videogame-themed T-shirt and immediately offered him a job as a composer.
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+
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+ On the other hand, Hibino got into the videogame music industry as a saxophonist because that was the only job he could find at the time.
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+
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+ He has not looked back since.
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+
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+ Both now see VGL as a way to promote videogame soundtracks as a legitimate art form, equivalent to classical or mainstream music.
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+
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+ Tallarico�s favourite piece is the Street Fighter II medley and the theme from Castlevania, while Hibino�s is the theme from Metal Gear Solid: Snake Eater.