Interpret no significant difference from an experiment
Last updated: July 26, 2025
Quick Overview
An experiment shows conflicting results. What conclusions can you draw? What are the caveats?
Optiver
July 26, 20250
5
206 solved
An experiment shows conflicting results. What conclusions can you draw? What are the caveats?
Statistics questions at Optiver 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
- How would you handle multiple comparisons?
- What alternative statistical method could you use here?
- How would you design a follow-up experiment based on these results?
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Browse Statistics QuestionsSample Answer
Problem Formulation
We begin by defining the experiment's hypotheses. Let be the null hypothesis stating that there is no significant difference in the outcomes of the experimental groups, and let be ...
Solution Approach
- Calculate Adjusted P-Values: For each p-value from the experiments, apply the Bonferroni correction or the FDR approach.
- Determine Statistical Significance: Compare the adjusted p-value...
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