Design an A/B test for a new checkout flow
Last updated: May 29, 2026
Quick Overview
Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.
Spotify
May 29, 2026226
4
2,009 solved
Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.
Statistics questions at Spotify test your ability to reason quantitatively and design rigorous experiments. This Take-home Project question evaluates your understanding of statistical inference and its application to business decisions.
What the Interviewer Expects
- Derive results from first principles when needed
- Handle complex scenarios with multiple interacting variables
- Design experiments that account for real-world complications
- Discuss advanced topics: Bayesian methods, causal inference, resampling
- Connect statistical concepts to business decision-making
- Identify subtle errors in reasoning (Simpson's paradox, survivorship bias)
Key Topics to Cover
How to Approach This
- Define your hypotheses (H0 and H1) clearly before performing any test.
- Calculate required sample size BEFORE running an experiment, using power analysis.
- Remember the Central Limit Theorem: sample means become approximately normal with large n.
- Watch for Simpson's paradox. Always segment data by key dimensions.
- Distinguish between statistical significance and practical significance.
Possible Follow-up Questions
- What assumptions does this test make, and how would you validate them?
- How would you design a follow-up experiment based on these results?
- What if the sample size is very small?
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Browse Statistics QuestionsSample Answer
Problem Formulation
To evaluate the impact of new pricing tiers on user conversion rates in Spotify's checkout flow, we will set up an A/B test.
- Hypotheses:
- Null Hypothesis (H0): There is no difference in ...
Solution Approach
To calculate the sample size, we can use the formula for comparing two proportions:
Where:
- ( p_...
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