Evaluate Propensity Score Matching Alternatives and Diagnostics
NetflixData Scientist · Other
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This interview question evaluates statistical assumptions, formulas, estimation strategy, uncertainty, edge cases, and interpretation in a realistic interview setting. A strong answer for Evaluate Propensity Score Matching Alternatives and Diagnostics states assumptions, handles edge cases, explains trade-offs, and shows how to validate the result clearly.
Scenario
Reviewing a completed observational study that used Propensity Score Matching (PSM) to estimate the impact of a UI change on watch time.
Question
Why is standardized mean difference (SMD) ≤ 0.1 often used as a balance threshold in PSM? If logistic regression is not appropriate for the propensity model, what alternatives would you consider and why? How would you diagnose residual confounding after matching? Describe one method to estimate treatment effect variance under PSM.
Hints
Discuss overlap, balance diagnostics, causal estimands, and robust variance.
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