ACCURATE PROXY METRIC EVALUATION

Summary from the TLDR Web Dev newsletter

Netflix researchers developed methods to analyze historical A/B test data to understand the relationship between proxy metrics and long-term business outcomes. They propose three estimators that offer more robust solutions for understanding the true relationship between proxy metrics and north star metrics: Total Covariance (TC), Jackknife Instrumental Variables Estimation (JIVE), and Limited Information Maximum Likelihood (LIML).