After completing Unit 1, students will take an interview focused on experimentation. The goal of this interview is to evaluate problem solving in the context of experimentation. Students should be able to design a proper A/B test and discuss how they would evaluate it.
We use a generic coffee shop as the setup for this problem. The form of the interview in general is as follows, though be sure to be prepared to adapt to the path the student chooses to pursue.
Afterwards, write up comments and ways to improve and submit them via the Typeform linked in your dashboard.
Introduce yourself first! Ask if they have any questions before you begin, and then start the interview.
Introductory question:
You run a coffee shop and you’re looking to increase business. The way that you come up with to do that is to change the sign in front of your store. However, you’re not just some typical coffee shop owner, you want to be data driven. How would you use data to evaluate the new sign’s effect on your business?
Stages of the Answer:
Students should be allowed to answer the question as they see fit, and do not create too much scaffolding for them right at the start. Part of the task is to be able to build that outline and then fill it in with the details.
However, here is a rough outline of what is typically present in a good answer and some potential follow up questions. Following the flow of how experimentation actually works is key to developing a logical plan and outline through the interview, so too much deviation from this order may cause confusion (meaning, don’t start with evaluating a t-test and then outline a metric to track). Throughout the interview ask why and ask them to explain any tools or techniques they want to use.
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What should we do?
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Set up an experiment or A/B test
- Why?
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Period with sign A then period with sign B
- Make sure that the only difference is the sign, making for a good controlled experiment
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How long do you run the experiment?
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Most suggest a week or a month
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Why?
- Control for seasonality
- Sample size
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If people don’t include an A test period (wanting to use old data) would they use all the old data or just a similar time period to the test time period
- What happens if they compare against years of data?
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Can you be statistically rigorous here?
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What are the metrics you’d want to look at?
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Usually sales or number of customers
- They have to make sure they’re not just calculating a single number
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Would you look at any other metrics?
- Why look at multiple metrics?
- Other metrics students could mention:
- Visitors
- Sales per customer
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Evaluate your experiment
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How would you do it?
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Usually t-test
- Why?
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Walk through interpretation
- P-value should get defined here. If they don’t ask.
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What if the results are significant? What do you do next
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What if they’re not?
- It may take some time for an effect to be seen is a good thing for students to bring up. It also makes a decent follow up.
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Extensions - Assuming the student gets through these problems and outlines a robust experiment, here are potential extensions or follow up questions.
- How would it change if it were a national chain of coffee shops?
- How is this experiment different if it’s price?