Design an A/B test for a pricing model
Last updated: September 13, 2025
Quick Overview
Design an experiment to test the impact of a redesigned homepage. Include sample size calculation, metrics, and analysis plan.
Goldman Sachs
September 13, 20250
5
4,654 solved
Design an experiment to test the impact of a redesigned homepage. Include sample size calculation, metrics, and analysis plan.
Goldman Sachs asks this during the Take-home Project 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
- Define clear success metrics aligned with business goals
- Propose a basic experimental design with control and treatment groups
- Interpret results correctly and draw reasonable conclusions
- Identify obvious confounding variables
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 if the experiment shows a positive short-term effect but you suspect a negative long-term impact?
- How would you handle an experiment where the control and treatment groups are different sizes?
- How would you handle interference between treatment and control?
- What if you discover a bug in the logging during the experiment?
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Browse Analytics QuestionsSample Answer
Problem Setup
The analytical question here is: "What is the impact of a redesigned homepage on user engagement and conversion rates?" To address this, we need to collect data on user interactions such as page views...
Methodology
For this A/B test, we will randomly assign users to two groups: the control group (existing homepage) and the treatment group (redesigned homepage). The sample size calculation will employ the followi...
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