Design an A/B test for a pricing model
Last updated: October 10, 2025
Quick Overview
Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.
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Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.
Statistics questions at LinkedIn 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
- State the correct formula or theorem with clear definitions
- Apply the concept to the given scenario step by step
- Interpret the result in plain language
- Identify assumptions and when they might be violated
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
- How would you design a follow-up experiment based on these results?
- What if the sample size is very small?
- What alternative statistical method could you use here?
- How would you handle multiple comparisons?
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Setting Up the Problem
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