Design an A/B test for a new checkout flow

Last updated: July 23, 2025

Quick Overview

Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.

Lyft
Statistics & Math
Data Scientist
Lyft
July 23, 2025
Data Scientist
Onsite
Statistics & Math
Medium

1

5

2,056 solved


Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.

Lyft values data-driven decision making. This Onsite question assesses whether you can design experiments, interpret results correctly, and avoid common statistical pitfalls like p-hacking or Simpson's paradox.

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
Hypothesis testing (H0, H1, p-values)
Central Limit Theorem
Probability distributions
Confidence intervals and significance levels
Bayesian vs frequentist inference
Causal inference basics
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 design a follow-up experiment based on these results?
  • What alternative statistical method could you use here?
  • How would you handle multiple comparisons?
  • What if the sample size is very small?
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Sample Answer
Setting Up the Problem

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