Course outline

Matching and Inverse-Probability Weighting

By the end of this lesson, you should be able to: estimate and check a propensity score, match and weight with it, read a balance table properly, and explain why a balance table that looks perfect is not evidence that your estimate is right.

A number that would get the tool bought

Alder Cloud rolled out an AI coding assistant. Adoption is voluntary, so some teams turned it on and some didn't.

Teams that adopted20.78 PRs/week
Teams that didn't11.46 PRs/week
Gap+59.52%

The true effect is +5.83%. The gap is 10.2 times the effect.

They were different before they adopted anything

Look at what the two groups looked like before the assistant existed.

AdoptersOthersStandardised difference
Prior PRs per week15.9810.43+0.826
Prior reviews per week35.5225.38+0.691
Team size8.517.82+0.142
Tenure, days275293−0.092

The standardised mean difference expresses each gap in standard deviations, so covariates on different scales are comparable. Anything past 0.1 is conventionally a problem, and prior throughput is at 0.83.

Adopters were already shipping 53% more before they adopted. The assistant did not do that.