Design an A/B test for a pricing model
Last updated: January 26, 2026
Quick Overview
Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.
Adobe
January 26, 202631
3
3,073 solved
Design an experiment to test the impact of new pricing tiers. Include sample size calculation, metrics, and analysis plan.
Statistics questions at Adobe test your ability to reason quantitatively and design rigorous experiments. This Onsite question evaluates your understanding of statistical inference and its application to business decisions.
What the Interviewer Expects
- Set up the problem formally with proper notation
- Apply the correct statistical test with clear justification
- Interpret results with appropriate caveats and confidence levels
- Discuss practical significance vs statistical significance
- Identify potential confounders and how to address them
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?
- What alternative statistical method could you use here?
- What if the sample size is very small?
- How would you explain this result to a non-technical audience?
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Browse Statistics QuestionsSample Answer
Problem Formulation
To evaluate the impact of new pricing tiers on customer conversion rates, we will conduct an A/B test. We define:
- Null Hypothesis (H0): There is no significant difference in conversion rates be...
Solution Approach
To determine the sample size needed for the A/B test, we will perform the following steps:
- Define baseline conversion rate (): Assume the current conversion rate is 10% (0.10).
- **Se...
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