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Determine Discount's Effect on Conversion Rate with A/B Testing

AmazonData Scientist · Technical Screen

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This interview question evaluates metric design, causal reasoning, experiment setup, diagnostics, SQL/statistical checks, and recommendations in a realistic interview setting. A strong answer for Determine Discount's Effect on Conversion Rate with A/B Testing states assumptions, handles edge cases, explains trade-offs, and shows how to validate the result clearly.

Scenario

E-commerce retailer wants to understand if a 10 % discount increases conversion rate.

Question

Design and analyze an A/B test to measure the discount’s impact: state hypotheses, choose metrics, estimate sample size, outline experiment setup, analysis, and how you would interpret results.

Hints

Discuss randomization unit, power, guardrails, significance testing, segmentation, dilution and novelty effects.