Design an A/B test for a new checkout flow

Last updated: August 16, 2025

Quick Overview

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

Neon
Analytics & Experimentation
Product Manager
Neon
August 16, 2025
Product Manager
Take-home Project
Analytics & Experimentation
Medium

542

4

2,074 solved


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

Analytics questions at Neon evaluate your ability to define metrics, design experiments, and derive actionable insights from data. This Take-home Project question tests your end-to-end analytical thinking.

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
Funnel analysis and cohort analysis
Metric definition and success criteria
Novelty and primacy effects
Network effects and interference
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
  • How would you handle interference between treatment and control?
  • What if you discover a bug in the logging during the experiment?
  • How would you handle seasonality in your experiment?
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