Design an A/B test for a new checkout flow

Last updated: September 16, 2025

Quick Overview

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

SpaceX
Statistics & Math
Data Scientist
SpaceX
September 16, 2025
Data Scientist
Phone Screen
Statistics & Math
Medium

6

4

299 solved


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

This statistics question from SpaceX's Phone Screen 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
Hypothesis testing (H0, H1, p-values)
Central Limit Theorem
Probability distributions
Conditional probability and Bayes theorem
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
  • What assumptions does this test make, and how would you validate them?
  • What alternative statistical method could you use here?
  • How would you handle multiple comparisons?
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Sample Answer
Setting Up the Problem

Start by formalizing the problem: 1. **Define the hypotheses**: H0 (null hypothesis) and H1 (alternative). Be precise about what you're testing. 2. ...

Solution Approach

**Compute the test statistic**: Apply the appropriate formula using the sample data. **Find the p-value**: The probability of observing a result this...


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