Calculate expected value for click-through rates

Last updated: April 16, 2026

Quick Overview

Given the following scenario about user conversion, calculate the the sample size needed.

Instacart
Analytics & Experimentation
Product Manager
Instacart
April 16, 2026
Product Manager
Technical Screen
Analytics & Experimentation
Medium

61

6

1,085 solved


Given the following scenario about user conversion, calculate the the sample size needed.

Instacart asks this during the Technical Screen to assess your experimentation skills. They want to see how you define success metrics, design controlled experiments, and interpret results with appropriate statistical rigor.

What the Interviewer Expects
  • Design a rigorous experiment with proper randomization and sample size calculation
  • Define primary and guardrail metrics with clear rationale
  • Address novelty effects, network effects, and interference
  • Segment results appropriately and identify heterogeneous treatment effects
  • Propose follow-up analyses when results are ambiguous
Key Topics to Cover
Long-term vs short-term metrics
Network effects and interference
Sample size and power calculation
Segmentation and heterogeneous effects
Simpson's paradox and ecological fallacy
Funnel analysis and cohort analysis
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 if you discover a bug in the logging during the experiment?
  • What would you do if a stakeholder wants to end the experiment early because initial results look good?
  • How would you handle seasonality in your experiment?
  • How would you handle interference between treatment and control?
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Browse Analytics Questions
Sample Answer
Problem Setup

The analytical question here is to estimate the sample size needed to achieve a statistically significant result for click-through rates (CTR) on Instacart's platform. To do this, we need historical d...

Methodology

We will use the formula for sample size calculation for comparing two proportions, which is appropriate for this scenario where we are interested in the difference in CTR between two groups (control v...


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