Quantitative Methods#

Statistical tools used to model data, test hypotheses, and quantify uncertainty


Cohen’s kappa coefficient#

Definition: statistical measure of inter-rater agreement for categorical items; quantifies the level of agreement between two raters while accounting for chance agreement

Purpose: verifies that a codebook is applied consistently across raters, supporting the reliability of qualitative coding

Example: Gao and Chen cite Cohen’s kappa in their “From Agent Behaviour to Agent-Friendly Documentation” as part of an established reliability apparatus for classifying documentation interactions, facilitate human validation of their coding scheme, but don’t implement it

Related Terms: codebook, Krippendorff’s alpha, Wilson interval

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confidence interval#

Definition: range of values likely to contain the true effect size, given the statistical model’s assumptions; commonly reported as a 95% confidence interval - if computed repeatedly under valid conditions, 95% of such intervals will contain the true value

Purpose: width indicates the precision of an estimate, with narrower intervals signaling more precise estimates; not to be confused with a “95% probability the true value is in this range” for any single interval

Example: interval selection depends on the data structure and underlying assumptions; Gao and Chen chose cluster bootstraps over Wilson intervals for their primary analysis in “From Agent Behaviour to Agent-Friendly Documentation” for their primary analysis because standard intervals like Wilson assume independence, which is violated in clustered agent interaction data

Related Terms: null hypothesis, p-value, statistical inference, Wilson interval

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Krippendorff’s alpha#

Definition: statistical measure of inter-rater agreement for categorical items; generalizes Cohen’s kappa to handle multiple raters, missing data, and different measurement levels

Purpose: verifies that a codebook is applied consistently across raters, supporting the reliability of qualitative coding

Example: Gao and Chen cite Krippendorff’s alpha in their “From Agent Behaviour to Agent-Friendly Documentation” as part of an established reliability apparatus for classifying documentation interactions, facilitate human validation of their coding scheme, but don’t implement it

Related Terms: codebook, Cohen’s kappa coefficient, Wilson interval

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model checking#

Definition: process of evaluating whether statistical model assumptions are satisfied by the data; includes diagnostic tests for fit, examining residuals, and testing additional model terms

Purpose: identifies violations that could invalidate statistical inferences; itself relies on further assumptions that become part of the full model

Related Terms: statistical inference, statistical model


non-parametric methods#

Definition: statistical techniques that make fewer assumptions about data distribution than parametric methods; don’t assume data follows a specific distribution, such as a normal distribution

Purpose: somewhat misleadingly named, since these methods are not assumption-free; still require assumptions such as random sampling or randomization

Related Terms: statistical inference, statistical model


null hypothesis#

Definition: premise proposing zero effect or no relationship between variables; serves as a baseline for testing

Purpose: tested to determine if observed data are unusual enough to reject the hypothesis; failure to reject doesn’t prove the null is true, only that the data are compatible with it

Example: a treatment makes no difference in average outcome compared to control

Related Terms: confidence interval, one-sided hypothesis, p-value, power


OLS regression#

Definition: acronym for Ordinary Least Squares regression; statistical method that estimates relationships between variables by minimizing squared differences to find the best-fitting line through data points

Purpose: used in AI testing to build simple prediction models based on historical data

Related Terms: prediction model, statistical model


one-sided hypothesis#

Definition: also known as a dividing hypothesis; test premise about whether an effect is greater than or less than a specific value

Purpose: differs from two-sided tests that check whether an effect differs in either direction

Example: testing whether a new treatment is at least as good as the standard treatment

Related Terms: null hypothesis, p-value


power#

Definition: probability that a statistical test will reject the test hypothesis when a specific alternative is correct; calculated before a study to determine adequate sample size

Purpose: studies are typically designed for 80% power, meaning the test will detect a true effect 80% of the time; doesn’t measure compatibility of the alternative hypothesis with observed data and shouldn’t be used to interpret results after data collection

Related Terms: null hypothesis, p-value


prediction model#

Definition: algorithm or statistical model that forecasts outcomes based on input data; learns patterns from training data to make predictions about new cases

Purpose: ranges from basic regression models to complex neural networks; accuracy depends on data quality, feature selection, and algorithm sophistication

Related Terms: OLS regression, statistical model


probability#

Definition: in frequentist statistics, refers to hypothetical frequencies of data patterns under an assumed model, measured over many repetitions of the same procedure under identical conditions; in Bayesian statistics, represents the degree of belief in a hypothesis given observed data

Purpose: often confused with the probability of a hypothesis being true or false, leading to common statistical misinterpretations; essential for distinguishing between deterministic and probabilistic approaches in testing and evaluation

ConceptDescription
DeterministicSame input always produces same output; no randomness
ProbabilisticOutput may vary across runs due to randomness or sampling
Prior ProbabilityInitial belief about a hypothesis before observing any data
Posterior ProbabilityUpdated belief after incorporating observed data using Bayes’ theorem

Example: LLM inference is probabilistic due to temperature, sampling introduce variability - while executing a compiled program is deterministic - same binary + same input = same output; deterministic test execution ensures reproducibility, while probabilistic evaluation, such as LLM-as-a-judge, introduces variability across runs

Related Terms: Bayesian experiment, LLM-as-judge, p-value, statistical inference


p-value#

Definition: probability that observed data, or more extreme, would occur if all model assumptions - including the test hypothesis - were correct; ranges from 0, complete incompatibility, to 1, perfect compatibility

Purpose: used to determine whether an observed effect is likely due to chance; measures the evidence the outcome provides against a given claim while accounting for variability; a low p-value indicates the test procedure had little probability of producing an outcome as large as the observed, were the claim true; commonly misinterpreted as the probability that the hypothesis is true or false

ConceptDescription
evidence against claimp-value quantifies how surprising the outcome is assuming the claim holds
null hypothesisthe default assumption that there is no effect or difference; the claim being tested
point estimatethe observed effect, which is the best guess of the true effect given the sample
variabilityrandom variation in outcomes due to user differences and sampling

Example: in an A/B test observing 10% lift with p-value 0.01, outcomes ≥10% would occur in only 1 out of 100 tests if the true lift were zero; this rarity provides evidence against the claim of no effect

Related Terms: confidence interval, null hypothesis, probability, statistical model

Source: Analytics Toolkit: “P-values and Confidence Intervals Explained” by Georgi Georgiev


scalar#

Definition: mathematical concept, specifically from linear algebra; element of a field which is used to define a vector space through the operation of scalar multiplication

Purpose: a “scalar value” refers to a single numerical quantity that has magnitude but no direction, distinguishing it from vector-valued quantities

Related Terms: statistical model


statistical inference#

Definition: process of drawing conclusions about populations or processes from sample data; includes hypothesis testing, confidence interval estimation, and parameter estimation

Purpose: foundational methodology for evaluating whether observed results are meaningful or due to chance; accounts for uncertainty and random variation when making generalizations

Related Terms: confidence interval, null hypothesis, statistical model, uncertainty quantification


statistical model#

Definition: mathematical representation of data variability and all assumptions used to compute statistics; embodies a full web of assumptions beyond just equations with parameters, including data collection, randomization, treatment allocation, and analysis choices

Purpose: violation of any assumption, not just the test hypothesis, can produce misleading P values; often presented in compressed form, with many assumptions left unstated or unrecognized

Related Terms: model checking, non-parametric methods, p-value, statistical inference


stochastic#

Definition: random probability distribution or pattern that may be analyzed statistically, but may not be predicted precisely

Purpose: commonly used in mathematics, science, and information theory to describe processes governed by randomness

Related Terms: probability, uncertainty quantification


Wilson interval#

Definition: method for estimating a confidence interval for a population proportion; adjusts the Clopper-Pearson interval to have better coverage properties for small sample sizes and extreme proportions

Purpose: provides more accurate coverage than the Wald interval, especially when the sample size is small or the proportion is near 0 or 1; commonly used in A/B testing and comparative experiments

Example: Gao and Chen cite Wilson intervals in their “From Agent Behaviour to Agent-Friendly Documentation” as a reference for small and zero counts in their primary intervals, which are cluster bootstraps

Related Terms: A/B test, Cohen’s kappa coefficient, confidence interval, Krippendorff’s alpha

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uncertainty quantification#

Definition: process of measuring and characterizing uncertainty in predictions, decisions, or model outputs; distinguishes between aleatoric uncertainty - inherent randomness - and epistemic uncertainty - lack of knowledge

Purpose: enables AI systems to express confidence levels and identify when additional data or validation is needed; critical for safe deployment in high-stakes domains like healthcare, autonomous systems, and decision support

Example: common methods include Bayesian inference, ensemble approaches, and Monte Carlo techniques

Related Terms: prediction model, statistical inference, stochastic