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    "title": "Ivan Baldin, Data Analyst: posts tagged equations",
    "_rss_description": "Data analytics, probability theory, and applied statistics — from the practitioner’s perspective. Ivan Baldin writes about sales funnels, call center performance, conversion analysis, confidence intervals, binomial distributions, Z-scores, and the math behind data-driven decisions. Years of hands-on experience turning raw CRM data into actionable insights for sales teams and business leaders.",
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        {
            "name": "Ivan Baldin",
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            "id": "3",
            "url": "https:\/\/ivanbaldin.blog\/all\/a-smarter-way-to-calculate-ratings\/",
            "title": "A Smarter Way to Calculate Ratings",
            "content_html": "<p>Here’s a puzzle. Two employees get rated by their clients on a 1-to-5 scale. Their average scores are identical:<\/p>\n<p>Johnson — 5, 5, 5, 5, 5, 2, 2, 2, 2, 2. <b>Average = 3.50.<\/b><br \/>\nMiller — 4, 4, 3, 3. <b>Average = 3.50.<\/b><\/p>\n<p>A tie. Except — it doesn’t feel like a tie, does it? Johnson has ten ratings, all over the map. Miller has four, tightly clustered. Shouldn’t that matter?<\/p>\n<p>It does. And a fascinating <a href=\"https:\/\/www.evanmiller.org\/ranking-items-with-star-ratings.html\">article on EvanMiller.org, “Ranking Items With Star Ratings,”<\/a> shows exactly how. (Judging by the author’s tone, the whole business of ranking things by ratings is <a href=\"https:\/\/www.evanmiller.org\/how-not-to-sort-by-average-rating.html\">far thornier than it looks<\/a>, and he keeps coming back to it.)<\/p>\n<p class=\"loud\">The core problem is simple: a plain average ignores how many votes went into it. A 4.8 rating from 300 reviews is not the same as a 4.8 from 6 reviews. The first one you can trust. The second one — who knows.<\/p>\n<p>The solution comes from <a href=\"https:\/\/en.wikipedia.org\/wiki\/Bayesian_statistics\">Bayesian statistics<\/a> (whatever that might mean in this context exactly), et voilà:<\/p>\n<p>Johnson — <b>2.72<\/b><br \/>\nMiller — <b>2.63<\/b><\/p>\n<p>Somehow, either the tighter spread of Miller’s scores (SD of 0.58 vs. 1.58), or the smaller number of ratings (4 vs. 10), or both together <b>refined<\/b> the average, giving Miller the edge by a few hundredths. The tie is broken.<\/p>\n<h2>The formula behind the advanced rating<\/h2>\n<p>Brace yourself. It’s gonna sting a little.<\/p>\n<p>We <a href=\"https:\/\/www.evanmiller.org\/ranking-items-with-star-ratings.html#setup\">assume<\/a> there are <i><b>K<\/b><\/i> possible ratings, indexed by <i><b>k,<\/b><\/i> where each rating is worth <i><b>s<sub>k<\/sub><\/b><\/i> points (“1” = 1 point, “2” = 2 points, and so on). Given <i><b>N<\/b><\/i> total ratings for each item, with <i><b>n<sub>k<\/sub><\/b><\/i> ratings for each <i><b>k,<\/b><\/i> we can compute the item’s score using the following formula:<\/p>\n<div class=\"e2-text-picture\">\n<img src=\"https:\/\/ivanbaldin.blog\/pictures\/ratings00.png\" width=\"835\" height=\"229\" alt=\"\" \/>\n<\/div>\n<p>Where <i><b>z<sub>α\/2<\/sub><\/b><\/i> is the <i><b>1−α\/2<\/b><\/i> quantile of the normal distribution. The resulting score is the lower bound of a normal approximation to the Bayesian confidence interval for the average rating. Setting, say, α=0.10 (z=1.65), the score <i><b>S<\/b><\/i> means that in 95% of cases, the item’s true average rating will be above <i><b>S<\/b><\/i>.<\/p>\n<p class=\"loud\">In plain English: the “advanced” calculation gives you a conservative estimate of what the average rating would converge to if you had more data. And — as we saw with Johnson and Miller — it lets you rank items even when their plain averages are identical.<\/p>\n<h2>The advanced rating in action<\/h2>\n<p>I took 2,000 ratings on a 1-to-5 scale across a set of regional sales offices and computed both the plain average and the “advanced” score for each one.<\/p>\n<div class=\"e2-text-picture\">\n<div class=\"fotorama\" data-width=\"695\" data-ratio=\"1.08934169279\">\n<img src=\"https:\/\/ivanbaldin.blog\/pictures\/ratings01.png\" width=\"695\" height=\"638\" alt=\"\" \/>\n<img src=\"https:\/\/ivanbaldin.blog\/pictures\/ratings02.png\" width=\"695\" height=\"638\" alt=\"\" \/>\n<\/div>\n<div class=\"e2-text-caption\">Average 1.0 — plain average rating; Average 2.0 — advanced average rating.<\/div>\n<\/div>\n<p>Flushing dropped from 2nd to 4th place. The likely reason: its 66 ratings don’t inspire enough confidence that the average is truly that high. In 90% of scenarios, its predicted rating is no better than 4.55 — roughly 4th place territory.<\/p>\n<p>Tribeca, on the other hand, was formally 13th. But thanks to a solid base of 249 ratings, the model predicts — with 90% confidence — an average of at least 4.4, which bumps it up to 10th.<\/p>\n<p>My impression is that the formula works most convincingly for short rating scales, like the 1-to-5 used here.<\/p>\n<p>In any case, here is a <a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1fGsO3GJBwV465hwfH6V_wX5herkjVGUrgwzZWUq8T2A\/edit?usp=sharing\">Google Sheets workbook<\/a> — it should handle rating scales up to 100, import up to 10,000 rows of individual ratings, and lets you adjust the confidence level (90% in our example).<\/p>\n<h2>See also<\/h2>\n<p><a href=\"https:\/\/www.evanmiller.org\/ranking-items-with-star-ratings.html\">https:\/\/www.evanmiller.org\/ranking-items-with-star-ratings.html<\/a><\/p>\n<p><a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1fGsO3GJBwV465hwfH6V_wX5herkjVGUrgwzZWUq8T2A\/edit?usp=sharing\">Advanced rating calculator<\/a> in Google Sheets<\/p>\n",
            "summary": "Two employees, same average rating — but should we trust 10 scattered scores the same as 4 consistent ones? Inspired by Evan Miller's work on ranking items with star ratings, this post walks through a Bayesian approach that accounts for both spread and sample size.",
            "date_published": "2019-09-21T15:59:00+03:00",
            "date_modified": "2026-04-12T03:29:09+03:00",
            "tags": [
                "Bayes",
                "equations",
                "Google Sheets",
                "ratings",
                "statistics"
            ],
            "image": "https:\/\/ivanbaldin.blog\/pictures\/ratings00.png",
            "_date_published_rfc2822": "Sat, 21 Sep 2019 15:59:00 +0300",
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        {
            "id": "7",
            "url": "https:\/\/ivanbaldin.blog\/all\/call-quality-audits-determining-your-sample-size\/",
            "title": "Call Quality Audits: Determining Your Sample Size",
            "content_html": "<h2>Calculating Sample Size for Quality Call Audits<\/h2>\n<p>A common tool for assessing the quality of sales managers’ work is <b>quality auditing of phone calls<\/b>, or “call monitoring.”<\/p>\n<p>Suppose your goal is not simply to <b>measure<\/b> the quality of phone calls, but to <b>document <i>growth<\/i> in that quality.<\/b> For example, you conducted training for your managers, introduced new incentives for meeting quality standards, or implemented some other intervention.<\/p>\n<div class=\"e2-text-picture\">\n<img src=\"https:\/\/ivanbaldin.blog\/pictures\/create-a-1080-1080-pixels-flat-style-cartoon-showi-(1).png\" width=\"1080\" height=\"1080\" alt=\"\" \/>\n<\/div>\n<p>It’s reasonable to assume that an improvement in quality in the first random call recorded after the training won’t definitively prove that quality has improved across all calls. Likely, a second successful call won’t conclusively confirm the hypothesis either.<\/p>\n<p>Thus, you’ll need to listen to — if not all calls — at least a <b>sufficient number<\/b> of calls after your changes, and the number of calls you’ll need to audit can, in fact, <b>be calculated precisely.<\/b><\/p>\n<h2>Calculating Sample Size<\/h2>\n<p>On page 35 of the paper “<a href=\"https:\/\/bpb-us-e1.wpmucdn.com\/sites.ucsc.edu\/dist\/2\/1389\/files\/2026\/03\/part1.pdf\">Introduction to Statistical Inference and Experimental Design<\/a>” I found a suitable example 1.9 and a formula for calculating such samples:<\/p>\n<div class=\"e2-text-picture\">\n<img src=\"https:\/\/ivanbaldin.blog\/pictures\/samplesize00.png\" width=\"858\" height=\"506\" alt=\"\" \/>\n<\/div>\n<p>In this example, an improvement in <a href=\"https:\/\/en.wikipedia.org\/wiki\/ACT\">ACT<\/a> math test scores from 24.5 (variance 8.2) to 26.0 points is considered, with α = 0.05 and power = 0.90.<\/p>\n<p>For convenience, I assembled the formula in a Google Sheet:<\/p>\n<p><a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1nbpXgnRy9FQUAVQIwfHRHdj6Rvrkjom1UYsj4OHJnrc\/edit?usp=sharing\">Sample Size Calculator<\/a><\/p>\n<div class=\"e2-text-picture\">\n<img src=\"https:\/\/ivanbaldin.blog\/pictures\/samplesize03.png\" width=\"1283\" height=\"532\" alt=\"\" \/>\n<div class=\"e2-text-caption\">You simply need to copy the file and substitute your own values.<br \/>\nIt’s reasonable to choose a confidence level between 80% and 95%, and a statistical power between 60% and 80%. Enter the average call quality score before changes, the standard deviation (SD) of call scores “before,” and the expected average call quality score “after” your changes.<\/div>\n<\/div>\n<h2>See also:<\/h2>\n<p><a href=\"https:\/\/bpb-us-e1.wpmucdn.com\/sites.ucsc.edu\/dist\/2\/1389\/files\/2026\/03\/part1.pdf\">https:\/\/bpb-us-e1.wpmucdn.com\/sites.ucsc.edu\/dist\/2\/1389\/files\/2026\/03\/part1.pdf<\/a><\/p>\n",
            "summary": "Stop guessing how many calls to audit. Use this statistical formula to calculate the exact sample size needed for call audits that prove quality improvements. Learn about confidence levels, power calculations, and A\/B testing verification for your sales team.",
            "date_published": "2019-05-26T16:46:00+03:00",
            "date_modified": "2026-04-18T14:21:49+03:00",
            "tags": [
                "A\/B test",
                "call center",
                "equations",
                "Google Sheets",
                "Sales Department"
            ],
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            "_date_published_rfc2822": "Sun, 26 May 2019 16:46:00 +0300",
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