Design an A/B test for a pricing model

Last updated: August 29, 2025

Quick Overview

Design an experiment to test the impact of a redesigned homepage. Include sample size calculation, metrics, and analysis plan.

Grubhub
Statistics & Math
Data Scientist
Grubhub
August 29, 2025
Data Scientist
Onsite
Statistics & Math
Hard

6

13

243 solved


Design an experiment to test the impact of a redesigned homepage. Include sample size calculation, metrics, and analysis plan.

Grubhub values data-driven decision making. This Onsite question assesses whether you can design experiments, interpret results correctly, and avoid common statistical pitfalls like p-hacking or Simpson's paradox.

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
Regression analysis
Conditional probability and Bayes theorem
Bayesian vs frequentist inference
Multiple testing correction (Bonferroni, FDR)
How to Approach This
  1. Define your hypotheses (H0 and H1) clearly before performing any test.
  2. Calculate required sample size BEFORE running an experiment, using power analysis.
  3. Remember the Central Limit Theorem: sample means become approximately normal with large n.
  4. Watch for Simpson's paradox. Always segment data by key dimensions.
  5. 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 handle multiple comparisons?
  • What alternative statistical method could you use here?
  • How would you explain this result to a non-technical audience?
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Sample Answer
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