How to analyze Simpson's paradox
LinkedInData Scientist · Technical ScreenLast updated
This question evaluates competency in causal reasoning, statistical inference, experimental design, and detection of Simpson's paradox within the Analytics & Experimentation domain.
A marketing team wants to evaluate a new email campaign. Two email versions, A and B, were tested over two weeks in two cities: San Francisco and New York. The overall pooled data suggests version A has a higher conversion rate than version B, but when you break the results down by city, and possibly by week, version B appears better in every subgroup.
How would you determine whether the new email is actually better? In your answer, discuss:
- what metric(s) you would define as primary and which guardrail metrics you would monitor,
- how Simpson's paradox can arise in this setting,
- what confounders or sources of imbalance you would check,
- how you would re-analyze the existing data,
- whether and how you can compute confidence intervals, and
- how you would redesign the experiment if the original allocation across cities or time was imbalanced.
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