Design an A/B test for a pricing model

Last updated: May 4, 2026

Quick Overview

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

Bloomberg
Analytics & Experimentation
Data Scientist
Bloomberg
May 4, 2026
Data Scientist
Technical Screen
Analytics & Experimentation
Medium

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3,786 solved


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

Bloomberg asks this during the Technical Screen to assess your experimentation skills. They want to see how you define success metrics, design controlled experiments, and interpret results with appropriate statistical rigor.

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
A/B testing methodology
Novelty and primacy effects
Long-term vs short-term 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
  • What if the experiment shows a positive short-term effect but you suspect a negative long-term impact?
  • How would you handle interference between treatment and control?
  • How would you handle seasonality in your experiment?
  • What if you discover a bug in the logging during the experiment?
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Sample Answer
Problem Setup

To design an A/B test for the new pricing tiers at Bloomberg, we need to frame our analytical question: **How do the new pricing tiers impact user conversion rates and overall revenue compared to the ...

Methodology

Statistical Approach:

For this A/B test, we will use a randomized controlled trial (RCT) methodology to ensure proper randomization. Each user will be randomly assigned to either the control group...


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