Calculate variance for A/B test results

Last updated: July 26, 2025

Quick Overview

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

Dropbox
Statistics & Math
Data Scientist
Dropbox
July 26, 2025
Data Scientist
Onsite
Statistics & Math
Medium

263

5

3,422 solved


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

This statistics question from Dropbox's Onsite tests your ability to apply mathematical reasoning to practical problems. The interviewer expects precise definitions, correct methodology, and awareness of assumptions and limitations.

What the Interviewer Expects
  • Set up the problem formally with proper notation
  • Apply the correct statistical test with clear justification
  • Interpret results with appropriate caveats and confidence levels
  • Discuss practical significance vs statistical significance
  • Identify potential confounders and how to address them
Key Topics to Cover
Multiple testing correction (Bonferroni, FDR)
Hypothesis testing (H0, H1, p-values)
Causal inference basics
Probability distributions
Confidence intervals and significance levels
How to Approach This
  1. Define your hypotheses (H0 and H1) clearly before performing any test.
  2. Calculate required sample size BEFORE running an experiment, using power analysis.
  3. Remember the Central Limit Theorem: sample means become approximately normal with large n.
  4. Watch for Simpson's paradox. Always segment data by key dimensions.
  5. Distinguish between statistical significance and practical significance.
Possible Follow-up Questions
  • How would you handle multiple comparisons?
  • What if the sample size is very small?
  • How would you design a follow-up experiment based on these results?
  • How would you explain this result to a non-technical audience?
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Sample Answer
Problem Formulation

To determine the sample size needed for an A/B test on user conversion rates, we need to establish the following parameters:

  1. Null Hypothesis (H0): There is no difference in conversion rates be...
Solution Approach

To calculate the required sample size (n) for each group, we use the formula for sample size in comparing two proportions:

n = (Zα/2 + Zβ)² * (p1(1-p1) + p2(1-p2)) / (p1 - p2)²

Where:

  • Zα/2 is the ...

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