AI engineering glossary · Statistics inference
What is propensity score?
Propensity score: The probability that a unit receives a treatment given its observed characteristics. Matching, weighting or stratifying on it balances treated and untreated groups in observational data. Adjusting on it can only balance the characteristics that were actually measured.
Propensity score: an example
Estimate each customer's chance of joining a loyalty programme from age, city and past spend, then compare members with non-members who had similar scores.
Related terms
More Statistics inference terms
- R-squared
- Randomisation
- Randomised controlled trial
- Regression coefficient
- Regression to the mean
- Rejection region
- Resampling
- Sample ratio mismatch
Where you learn it
Propensity score is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.