Base120 · Decomposition
Signal Separation
Distinguish meaningful patterns from random variation or confounding factors
When to use
"Use when data contains both meaningful patterns and random variation. Separate signal (the pattern you care about) from noise (random variation or confounding factors) before drawing conclusions."
Example
"A/B test results show a 3% lift. Is it signal (the change caused the lift) or noise (random variation)? Statistical significance testing separates the two — if the result is within the range of random variation, it is noise."
Common misuse
"Treating all variation as signal. Overfitting occurs when noise is treated as pattern — the model learns the random variation in the training data and fails to generalize."