Interpret mixed results across segments from an experiment

Last updated: December 28, 2025

Quick Overview

An experiment shows a 3% lift with p=0.08. What conclusions can you draw? What are the caveats?

DE Shaw
Statistics & Math
Data Scientist
DE Shaw
December 28, 2025
Data Scientist
Onsite
Statistics & Math
Medium

571

5

518 solved


An experiment shows a 3% lift with p=0.08. What conclusions can you draw? What are the caveats?

This statistics question from DE Shaw's Onsite tests your ability to apply mathematical reasoning to practical problems. The interviewer expects precise definitions, correct methodology, and awareness of assumptions and limitations.

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
Confidence intervals and significance levels
Power analysis and sample size calculation
Central Limit Theorem
Causal inference basics
Conditional probability and Bayes theorem
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
  • How would you handle multiple comparisons?
  • What assumptions does this test make, and how would you validate them?
  • What if the sample size is very small?
  • How would you explain this result to a non-technical audience?
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