Design an A/B test for a pricing model
Last updated: July 26, 2025
Quick Overview
Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.
Uber
July 26, 202517
5
4,526 solved
Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.
This analytics question from Uber's Technical Screen tests your ability to think critically about data. The interviewer expects you to consider confounding variables, selection bias, and the difference between correlation and causation.
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
How to Approach This
- Define success metrics carefully. A good metric is measurable, actionable, and aligned with business goals.
- Run experiments long enough to account for novelty effects and weekly seasonality.
- Use funnel analysis to identify where users drop off for maximum optimization impact.
- Segment results by key dimensions (platform, country, user cohort) to catch hidden patterns.
- Consider network effects and interference between treatment and control groups.
Possible Follow-up Questions
- What would you do if a stakeholder wants to end the experiment early because initial results look good?
- What if you discover a bug in the logging during the experiment?
- How would you handle an experiment where the control and treatment groups are different sizes?
- How would you handle interference between treatment and control?
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Browse Analytics QuestionsSample Answer
Problem Setup
The analytical question is to evaluate the impact of new pricing tiers on ride-hailing demand and revenue for Uber. We need to determine if the introduction of these pricing tiers leads to an increase...
Methodology
We will use a randomized controlled trial (RCT) design where we randomly assign users to either the control group (current pricing model) or the treatment group (new pricing tiers). To calculate the s...
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