Article ID: | iaor20164658 |
Volume: | 63 |
Issue: | 4 |
Start Page Number: | 868 |
End Page Number: | 876 |
Publication Date: | Aug 2015 |
Journal: | Operations Research |
Authors: | Bertsimas Dimitris, Johnson Mac, Kallus Nathan |
Keywords: | statistics: experiment, optimization, statistics: sampling |
Random assignment, typically seen as the standard in controlled trials, aims to make experimental groups statistically equivalent before treatment. However, with a small sample, which is a practical reality in many disciplines, randomized groups are often too dissimilar to be useful. We propose an approach based on discrete linear optimization to create groups whose discrepancy in their means and variances is several orders of magnitude smaller than with randomization. We provide theoretical and computational evidence that groups created by optimization have exponentially lower discrepancy than those created by randomization and that this allows for more powerful statistical inference.