Calculate conditional probability for user retention

Last updated: March 20, 2026

Quick Overview

Given the following scenario about revenue per session, calculate the the sample size needed.

Plaid
Analytics & Experimentation
Data Scientist
Plaid
March 20, 2026
Data Scientist
Phone Screen
Analytics & Experimentation
Easy

133

4

2,285 solved


Given the following scenario about revenue per session, calculate the the sample size needed.

This analytics question from Plaid's Phone Screen tests your ability to think critically about data. The interviewer expects you to consider confounding variables, selection bias, and the difference between correlation and causation.

What the Interviewer Expects
  • Define clear success metrics aligned with business goals
  • Propose a basic experimental design with control and treatment groups
  • Interpret results correctly and draw reasonable conclusions
  • Identify obvious confounding variables
Key Topics to Cover
Novelty and primacy effects
Metric definition and success criteria
Guardrail metrics
Simpson's paradox and ecological fallacy
How to Approach This
  1. Define success metrics carefully. A good metric is measurable, actionable, and aligned with business goals.
  2. Run experiments long enough to account for novelty effects and weekly seasonality.
  3. Use funnel analysis to identify where users drop off for maximum optimization impact.
  4. Segment results by key dimensions (platform, country, user cohort) to catch hidden patterns.
  5. Consider network effects and interference between treatment and control groups.
Possible Follow-up Questions
  • What would you do if a stakeholder wants to end the experiment early because initial results look good?
  • How would you handle interference between treatment and control?
  • What if you discover a bug in the logging during the experiment?
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Browse Analytics Questions
Sample Answer
Problem Setup

To calculate the sample size needed for evaluating user retention based on revenue per session, we need to frame our analytical question clearly: "What is the probability of user retention conditioned...

Methodology

The statistical approach to determine the sample size involves using the formula for estimating proportions in a population. Given that we want to calculate the conditional probability of retention ba...


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