Kalshi · Data Scientist
Updated · 2026-09-24

Kalshi Data Scientist
Interview Questions & Guide 2026

THE 60-SECOND BRIEF

As a Data Scientist at Kalshi, you are at the forefront of the prediction market revolution. You will be tasked with transforming massive, complex datasets into actionable insights that drive product strategy, market liquidity, and user engagement. Your work directly influences how Kalshi builds its platform, ensuring that its event-based contracts are accurately priced and accessible.

In modelling rounds the live question is usually why this model class for this problem, and how you would know six weeks after launch that it is still working. Deriving gradients by hand is rarely what is being probed.

PracHub has no confirmed round sequence for Kalshi. Treat the sections below as preparation areas and confirm the format with your recruiter.

Turn a vague request into a measurable questionSeparate novelty effects from durable behaviour changeSize an experiment before anyone launches it

30 min read

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See the practice prompts

12Practice promptsAcross five skill areas
3With worked solutionsIncluded in the practice prompts

As a Data Scientist at Kalshi, you are at the forefront of the prediction market revolution. You will be tasked with transforming massive, complex datasets into actionable insights that drive product strategy, market liquidity, and user engagement. Your work directly influences how Kalshi builds its platform, ensuring that its event-based contracts are accurately priced and accessible.

This role requires a unique intersection of rigorous quantitative analysis and product intuition. You will not just be building models; you will be identifying new market opportunities, optimizing user funnels, and working closely with engineering and product teams to translate data into tangible business outcomes. If you are comfortable working in a high-stakes, fast-paced environment where your technical output has an immediate, visible impact on the business, this is the right challenge for you.

01

Preparation focus

editorial

No round sequence has been reported for this company, so work the categories below and confirm the format with your recruiter.

What to demonstrate

  • Breadth across SQL, experimentation and product reasoning
  • Ability to state assumptions before choosing a method

How to prepare

  • Drill the practice exercises below and time yourself
  • Prepare three quantified stories about decisions you drove
PracHub interview preparation framework ↗

PracHub editorial advice for the preparation topics above.

01

Reading a pooled rate that moved because the mix moved, not because any behaviour changed

A pooled conversion rate is a weighted average, and a shift in the weights can move it in the opposite direction to every one of its parts. A paid campaign that brings low-converting traffic drops overall signup conversion even if desktop, mobile web and app conversion each rose that week, which is Simpson's paradox and it is the single most common cause of an inexplicable dashboard move. The discipline is to decompose before explaining: recompute the rate holding last period's segment weights fixed, and compare that counterfactual to the actual, so the mix effect and the rate effect are separated numerically rather than argued about. Segment on the dimensions that actually reweight, which in this domain are almost always device_type, referrer_channel, country and new versus returning.

02

Counting on an identity key that changes underneath the metric

visitor_id is per browser and per device, and it resets on cookie clearance, private browsing and platform privacy changes, so the distinct-visitor count drifts upward for reasons unrelated to reach. Any rate with visitors in the denominator therefore decays over time even when behaviour is constant, and any rate with visitors in the numerator inflates. The stitching at signup makes it worse in both directions: a user who signed up on mobile and returns on desktop is two visitors and one user, while a shared device is one visitor and several users. Decide which key each metric is counted on, write it into the definition, and when comparing a period before and after a platform privacy change, expect a level shift in every visitor-keyed metric and do not attribute it to the product.

03

Reporting a mean for a heavy-tailed metric without saying what it hides

For spend, session length or items per order, a small fraction of units carries most of the total, so the mean has a wide standard error and one account can move it. Fix the handling before you see the result: cap or winsorise at a pre-declared percentile, and report the median or the share above a threshold next to the mean. Capping changes the estimand, so say which question the capped number answers, and check how much of any difference comes from the top 0.1 percent of units.

04

Extrapolating a first-week lift inflated by novelty effects

Plot the treatment effect by days since first exposure instead of quoting one pooled average. A lift that decays toward zero across the test window is behaviour that will not persist, and annualising it produces a forecast that misses by an order of magnitude.

Choose a category, try a prompt, then open its approach, worked solution or follow-up when you need it.

9 technical prompts3 include a worked solution

How do you determine if a model is overfitting, and what steps do you …

medium
machine learning and modelling

How do you determine if a model is overfitting, and what steps do you take to mitigate it?

Approach
  1. Frame the prediction: the label, the moment of prediction, and the action it triggers.
  2. Pick an evaluation metric that matches the cost of each error type, not a default.
  3. Say how the offline result would be validated online before it is trusted.
Follow-up
  • What would you monitor after launch to know the model is still valid?
  • How would you choose the decision threshold, and who owns that choice?

Explain the trade-offs between different evaluation metrics for a bina…

medium
machine learning and modelling

Explain the trade-offs between different evaluation metrics for a binary classification model.

Approach
  1. Pick an evaluation metric that matches the cost of each error type, not a default.
  2. Frame the prediction: the label, the moment of prediction, and the action it triggers.
  3. Check what information would not exist at prediction time, and exclude it.
Follow-up
  • How would you choose the decision threshold, and who owns that choice?
  • What would you monitor after launch to know the model is still valid?

Split a pooled conversion drop into rate and mix

mediumWorked solution
mix shiftdecompositionpandas

You have weekly visit-to-signup counts by segment: a DataFrame with week, device_type, referrer_channel, visitors and signups. The pooled rate fell 0.84 percentage points between two consecutive weeks while several individual segments rose. Write a function that, for a caller-supplied list of segment columns, splits the pooled change into a rate effect, a mix effect and an interaction term that sum exactly to the observed change. Return those three scalars plus a per-segment contribution table sorted by absolute contribution, so the largest single driver can be named.

Approach
  1. State the algebra before coding: the pooled rate is r = sum over segments of w_s * r_s, with w_s the segment's share of the denominator. Then r1 - r0 decomposes exactly into sum(w_s0 * (r_s1 - r_s0)) for rate, sum((w_s1 - w_s0) * r_s0) for mix, and sum((w_s1 - w_s0) * (r_s1 - r_s0)) for interaction. The identity is per-segment, so it holds for any numbers you put in the four slots.
  2. Pivot both weeks onto a common segment index with an outer join so a segment that appeared or vanished is kept rather than dropped, then decide what rate to give a segment with no visitors in one of the weeks, and document the choice. The identity stays exact either way because the missing week's weight is 0, but the attribution does not. Filling the missing rate with 0 sends an appearing segment's entire w_s1 * r_s1 into the interaction term, since w_s0 = 0 makes both the rate term and the mix term (w_s1 - w_s0) * r_s0 identically zero; a vanishing segment then splits as -w_s0 * r_s0 in rate, -w_s0 * r_s0 in mix and +w_s0 * r_s0 in interaction.
  3. The convention used below instead imputes the missing week's rate as that week's pooled rate. A vanishing segment then lands wholly in mix at -w_s0 * r_s0, with rate and interaction cancelling; an appearing segment puts w_s1 * r_pooled0 in mix (volume arriving at the average rate) and only w_s1 * (r_s1 - r_pooled0) in interaction (its rate differing from that average). Impute by which week the segment is missing from, never by argument order, or the swap identities below stop holding.
  4. Guard the division where visitors is 0 so no NaN enters the vectors, because a single NaN poisons every sum. A segment with zero visitors in both weeks contributes exactly 0 and can be dropped; a segment missing from only one week does not contribute 0, and where its contribution lands is settled by the convention above, not by the guard.
  5. Compute the three components as vectors over segments, then sum. Keep the vectors, because the per-segment contribution table is what turns the decomposition into an explanation.
  6. Assert that the three components sum to the observed pooled change within floating-point tolerance. This identity is exact, so a mismatch means an implementation bug, not a modelling judgement.
Worked solution 25 min
  1. Aggregate to one row per (week, segment tuple) with summed visitors and signups, then split into w0 and w1 frames and align with an outer join, filling missing visitors and signups with 0.
  2. Compute w_s = visitors / visitors.sum() within each week, and r_s = signups / visitors only where visitors > 0. Where a week's visitors are 0, set that week's r_s to that week's pooled rate, the stated convention; never leave it NaN.
  3. rate_effect = (w0 * (r1 - r0)).sum(); mix_effect = ((w1 - w0) * r0).sum(); interaction = ((w1 - w0) * (r1 - r0)).sum().
  4. contribution = w0*(r1-r0) + (w1-w0)r0 + (w1-w0)(r1-r0) per segment, which reduces to w1r1 - w0r0; sort by abs and return the head.
  5. assert abs(rate + mix + interaction - (pooled1 - pooled0)) < 1e-12.
EXPECTED RESULTThree scalars summing exactly to the observed pooled change, plus a segment table whose contribution column also sums to that change. In the stated case rate and mix carry opposite signs: several segments converted better while volume moved toward a weaker-converting one, which is what makes the pooled move look inexplicable until it is split.
Follow-up
  • The mix effect accounts for 0.71 of the 0.84 point drop, driven by paid_social volume. What is your recommendation, and what would change it?
  • Why is a two-way split into a counterfactual rate and a residual also exact, and when would you prefer it to the three-way version?
  • Segmenting on device and channel leaves a large interaction term. What does that tell you about the choice of segments?

For someone who has spent the last year in notebooks, dashboards or modelling work and has not written raw SQL under time pressure. The first four days rebuild query fluency against a fixture you control and can verify by hand; the last three attach that fluency to the rest of the loop.

Small steps. Visible outcomes.0 / 7 completed
ONE WEEK · YOUR PACE

Prepare, practise & reflect

One practical outcome each day. Spend longer where you need it.

0 / 7 done
01Build a fixture you can check answers against
  • Create a local Postgres or SQLite database with four tables (users, sessions, events, orders) holding roughly 200 rows you generated yourself, so you know the contents well enough to predict every result.
  • Deliberately seed the cases that break queries: a user with no sessions, a session with no events, two orders sharing a timestamp, a NULL in one join key, and one duplicated user row.
  • Before writing any SQL, hand-compute five answers on paper (how many users placed at least one order, median orders per ordering user, and three others) and save them as the ground truth for the week.

Deliverable: A one-command seed script plus a text file of five hand-computed answers to grade every later query against.

Practice prompt ↗Practice prompt ↗Worked solution ↗
02Joins, filters and NULL semantics
  • Answer "which users have no orders" three ways (LEFT JOIN with IS NULL, NOT EXISTS, NOT IN) and confirm that the NOT IN version returns zero rows once the subquery contains a NULL, because the comparison is never TRUE.
  • Reproduce the LEFT JOIN that silently collapses to an inner join by putting a right-table predicate in WHERE, then fix it by moving the predicate into the ON clause, and record both row counts.
  • Create a fan-out bug on purpose by joining orders to order_items and summing the order total, then correct it with a pre-aggregated subquery and explain in one line which table changed the grain.

Deliverable: One annotated .sql file holding the three join traps, each with the wrong result and the corrected result side by side.

Practice prompt ↗Practice prompt ↗
03Window functions and frames
  • Write three window queries against the fixture: a running order total per user, the rank of each order within its user by value, and the day gap to that user's previous order, then check each against the day-one ground truth.
  • Run ROW_NUMBER, RANK and DENSE_RANK over a column containing ties, print all three side by side, and write one sentence on when each is the correct choice.
  • Switch one query from the default frame (RANGE BETWEEN UNBOUNDED PRECEDING AND CURRENT ROW, which is what you get when ORDER BY is present and no frame is written) to ROWS BETWEEN UNBOUNDED PRECEDING AND CURRENT ROW, and explain why the output differs only when the ORDER BY column has duplicates.

Deliverable: Three verified window queries plus a short note explaining the RANGE versus ROWS difference in your own words.

Practice prompt ↗Practice prompt ↗
04The four analytical query patterns
  • Write a monthly retention grid: first order month per user, then months-since-first as the column, and verify that month zero equals the cohort size exactly.
  • Sessionize the events table under a 30-minute inactivity rule using LAG plus a cumulative sum over a new-session flag.
  • Build a four-step funnel that counts distinct users rather than events at each step, and state the rule you applied to a user who reaches step three without ever logging step two.

Deliverable: One file with the retention, sessionization and funnel patterns, each carrying a one-line note on the assumption it bakes in.

Practice prompt ↗Practice prompt ↗Worked solution ↗
05Write SQL the way you will have to write it live
  • Set a 12-minute timer and solve three medium prompts in a plain editor with no execution and no autocomplete, then run them and tally syntax errors separately from logic errors.
  • Narrate one solution aloud while writing it, stating the grain of each intermediate result (one row per user, one row per user-day) before you type its body.
  • Rewrite your slowest solution as a CTE chain where every CTE name states its grain, and time yourself re-solving it from blank.

Deliverable: A recording of one narrated solution plus an error tally that separates syntax from logic.

Practice prompt ↗Practice prompt ↗
06One day for everything that is not SQL
  • Write the preconditions of the two-sample t-test from memory, then check them: independent observations, and a difference in means whose sampling distribution is approximately normal, which at large sample sizes follows from the central limit theorem rather than from normality of the raw values.
  • Write the difference between an odds ratio from logistic regression and a relative risk, and state the condition under which the two are close (low outcome prevalence).
  • Prepare a 90-second answer to "how would you know this model is any good" that names the metric, the baseline you would beat, and the cost of the errors you care about.

Deliverable: One page of notes covering test preconditions, the odds-ratio caveat and the model-quality answer.

Practice prompt ↗
07Full loop rehearsal
  • Run a 45-minute mock with someone willing to interrupt: 20 minutes of SQL, 15 minutes defining a metric, 10 minutes on a past project.
  • Re-solve from blank the two queries you were slowest on this week and compare the times against day five.
  • Write a five-line answer to "walk me through a project" that puts a number in the first sentence and names the decision the work changed.

Deliverable: Mock feedback notes plus a timed project narrative you can deliver without reading it.

Practice prompt ↗Worked solution ↗

Expand any day for tasks and deliverables. Your progress is saved on this device.

Interviewers here are not checking whether you can describe a project. They want the decision you made, why you made it under the information you had, and what changed afterwards that someone else could measure. A story that ends at 'I built a model' has no ending. Say what the model caused, or what you stopped doing because of it.

Describe a time you had to deal with a highly imbalanced dataset; what…

medium
behavioural and stakeholder questions

Describe a time you had to deal with a highly imbalanced dataset; what techniques did you use?

Approach
  1. State the situation in two sentences and spend the rest on your reasoning.
  2. Close with what you would do differently, concretely.
  3. Pick a story where you drove the decision, not one where you observed it.
Follow-up
  • How did you know the outcome was caused by your change?
  • What did you decide not to do, and why?

Explain a wide interval to a non-technical executive

medium
communicationuncertaintypricing

A pricing change is under consideration. Your best estimate of its effect on trial-to-paid conversion is a 1.8pp drop, with a 95% interval from a 4.6pp drop to a 1.0pp rise, read from a geo holdout rather than a randomised test. An executive preparing a board slide asks you for 'the number'. You have ninety seconds and one slide, and the words confidence interval, p-value and significance are not usable with this audience. Deliver the slide headline, the single supporting line, and what you say aloud.

Approach
  1. Recognise what is being probed: whether you can carry uncertainty into a decision instead of either hiding it or hiding behind it. The generic answer promises to explain the interval in plain English; the strong one replaces the question 'what is the number' with 'across this range, where does the decision change'.
  2. Find the threshold before you draft anything. Ask what the pricing case assumes, then compute the conversion drop at which the higher price stops adding revenue: price uplift on the conversions kept against the revenue lost from conversions forgone. That single figure is what makes the range legible.
  3. Restate the estimate and both bounds in the unit the audience already reasons in. Convert percentage points into monthly first-paid conversions at current trial volume, then into mrr_cents_constant_fx, so the slide reads as money per month rather than as statistics.
  4. Place the range against the break-even and say which part of it sits on each side. If most of the range clears the threshold, that is a recommendation to proceed with a monitoring plan; if the range straddles it, that is a recommendation to narrow the range first.
  5. Name what would narrow it and what that costs in weeks, then give one recommendation with an explicit condition for revisiting it. Uncertainty stated without a next step is read as indecision and the midpoint gets used anyway.
Follow-up
  • The executive says to give the midpoint and they will manage the risk. What do you do?
  • How does the slide change if the interval were a 4.6pp to 0.2pp drop, with no positive outcomes in range?
  • Why is a geo holdout the credible read here rather than the attributed channel numbers you already have?

Defend a flat experiment readout against a post-hoc segment

medium
experimentssegmentationpushback

A feature you evaluated is flat on seven-day activation: +0.05pp with a 95% interval of [-0.47pp, +0.57pp], from 61,000 exposed users per arm in fct_experiment_exposure joined to dim_user and fct_event. Baseline activation is 32%. The launch team asks you to drop every surface except mobile_web, where the point estimate is +1.1pp, and re-run. You have ten minutes in their planning meeting. Deliver a spoken position: what you will and will not do, and the decision you recommend.

Approach
  1. Recognise what is being probed: whether you hold a statistical position under social pressure without becoming either rigid or apologetic. A generic answer says the segment is not significant; a strong one separates the request into a question that is answerable (is the mobile_web number real?) and one that is not (can we ship on it?), and answers both.
  2. Price the multiplicity out loud. The slice was chosen after seeing the results, so its estimate is selected on favourable noise and is biased away from zero. With k independent looks at a nominal 5% level, the chance of at least one false positive is 1 - 0.95^k: 26% at six segments, 64% at twenty. Quote the k you actually inspected, not the k you reported.
  3. Use the arithmetic already in front of you. On the point estimates, a +1.1pp mobile_web effect combined with a pooled +0.05pp implies the remaining surfaces average negative in proportion to mobile_web's share of exposures. State that as a testable implication of their story rather than as a rebuttal of it.
  4. Ask the one question that settles the category: was mobile_web named in the analysis plan before launch? If it was, it is a planned comparison and gets a corrected reading. If it was not, it is a hypothesis, and the honest move is to size the test that would confirm it.
  5. Convert the refusal into a cost. Size a mobile_web-only confirmatory test at the claimed effect, state the weeks of mobile_web traffic it needs, and close with the recommendation: do not ship this as a lift, and note that the interval already rules out anything at or above +0.6pp, which is itself a useful input to the roadmap.
Follow-up
  • The confirmatory test you sized needs nine weeks of mobile_web traffic and the team has three. What do you recommend instead?
  • Suppose mobile_web was pre-registered. How does your reading change, and what correction do you apply?
  • Your interval excludes +0.6pp. Is that the same as saying the feature does nothing?
  • 01

    Describe a time you had to deal with a highly imbalanced dataset; what techniques did you use?

  • 02

    A pricing change is under consideration. Your best estimate of its effect on trial-to-paid conversion is a 1.8pp drop, with a 95% interval from a 4.6pp drop to a 1.0pp rise, read from a geo holdout rather than a randomised test. An executive preparing a board slide asks you for 'the number'. You have ninety seconds and one slide, and the words confidence interval, p-value and significance are not usable with this audience. Deliver the slide headline, the single supporting line, and what you say aloud.

  • 03

    A feature you evaluated is flat on seven-day activation: +0.05pp with a 95% interval of [-0.47pp, +0.57pp], from 61,000 exposed users per arm in fct_experiment_exposure joined to dim_user and fct_event. Baseline activation is 32%. The launch team asks you to drop every surface except mobile_web, where the point estimate is +1.1pp, and re-run. You have ten minutes in their planning meeting. Deliver a spoken position: what you will and will not do, and the decision you recommend.

PracHub interview preparation framework ↗
Is this an official Kalshi interview guide?

No. It is PracHub's own research and practice material for the Data Scientist role at Kalshi. Rounds and questions reflect what candidates have reported, not a process Kalshi has published, and they change over time. Confirm the current format and scope with your recruiter.

PracHub interview research ↗
How long does the typical interview process take?

While timelines vary, the process generally spans several weeks to ensure a thorough evaluation of your fit for the team.

PracHub interview research ↗
What is the company culture like?

Kalshi is fast-paced, highly analytical, and product-focused. Candidates report that the environment suits people who take initiative and are comfortable with ambiguity.

PracHub interview research ↗
How can I stand out in the technical assessment?

Focus on code readability, documentation, and the logic behind your approach rather than just achieving the "correct" answer.

PracHub interview research ↗
Sources & methodology 3 sources ↗

No official company page is cited. Rounds and questions come from candidate reports and PracHub editorial material; each source shows the date it was read.