Design an A/B test for a recommendation algorithm
Last updated: April 27, 2026
Quick Overview
Design an experiment to test the impact of a redesigned homepage. Include sample size calculation, metrics, and analysis plan.
JPMorgan
April 27, 20265
5
2,778 solved
Design an experiment to test the impact of a redesigned homepage. Include sample size calculation, metrics, and analysis plan.
Statistics questions at JPMorgan test your ability to reason quantitatively and design rigorous experiments. This Technical Screen 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?
- How would you explain this result to a non-technical audience?
- What alternative statistical method could you use here?
- How would you design a follow-up experiment based on these results?
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Problem Formulation
To assess the impact of the redesigned homepage on user engagement, we will conduct an A/B test. Let:
- A represent the control group (current homepage)
- B represent the treatment group (rede...
Solution Approach
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Sample Size Calculation: To determine the required sample size, we will use the formula for comparing two proportions:
[ n = \frac{(Z_{\alpha/2} + Z_{\beta})^2 \cdot (p_1(1-p_1) + p_2(1...
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