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Choose the right test for proportions

Last updated: Mar 29, 2026

Quick Overview

This question evaluates understanding of hypothesis testing for binary outcomes, including selection among z-test, chi-square, and Fisher’s exact test, derivation of the test statistic from Bernoulli→Binomial→Normal approximations, and computation of p-values and confidence intervals.

  • hard
  • Intuit
  • Statistics & Math
  • Data Scientist

Choose the right test for proportions

Company: Intuit

Role: Data Scientist

Category: Statistics & Math

Difficulty: hard

Interview Round: HR Screen

You run an A/B test on delivery completion rate (delivered_bool). Results: - Control: 1,000 orders, 920 delivered, 80 not delivered. - Variant: 1,000 orders, 880 delivered, 120 not delivered. 1) Select the most appropriate significance test and justify why it’s preferred over a t-test on proportions. Derive the test statistic formula starting from Bernoulli → Binomial → Normal approximations and state the conditions under which the approximation is valid (expected cell counts, continuity corrections). 2) Compute the p-value to 3 significant digits and a 95% confidence interval for the difference in proportions; show intermediate steps. 3) Now suppose a small-market rollout yields: Control 20 delivered / 25 total; Variant 12 delivered / 18 total. Re-evaluate test choice (Chi-square vs. Fisher’s exact vs. z-test). Compute the exact p-value or explain precisely how you would obtain it. 4) Explain when a two-sample t-test gives approximately the same result as a z-test for proportions, and when it fails. Include at least two concrete failure modes (e.g., low counts, unpooled variance misuse).

Quick Answer: This question evaluates understanding of hypothesis testing for binary outcomes, including selection among z-test, chi-square, and Fisher’s exact test, derivation of the test statistic from Bernoulli→Binomial→Normal approximations, and computation of p-values and confidence intervals.

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Intuit
Oct 13, 2025, 9:49 PM
Data Scientist
HR Screen
Statistics & Math
8
0

A/B Test on Delivery Completion Rate (Binary Outcome)

Context: You are evaluating an A/B test on a binary metric (delivered_bool). Treat each order as an independent Bernoulli trial. Assume two-sided hypotheses at alpha = 0.05 unless stated otherwise.

Data (Phase 1):

  • Control: n1 = 1,000 orders, x1 = 920 delivered, 80 not delivered
  • Variant: n2 = 1,000 orders, x2 = 880 delivered, 120 not delivered

Tasks

  1. Choose the most appropriate significance test to compare completion rates and justify why it is preferred over a t-test on proportions. Derive the test statistic starting from Bernoulli → Binomial → Normal approximations, and state conditions for validity (expected cell counts; continuity corrections).
  2. Compute the two-sided p-value (3 significant digits) and a 95% confidence interval for the difference in proportions. Show intermediate steps.
  3. Small-market rollout (Phase 2) yields:
    • Control: 20 delivered / 25 total
    • Variant: 12 delivered / 18 total Re-evaluate the test choice (Chi-square vs. Fisher’s exact vs. z-test). Compute the exact p-value or explain precisely how to get it.
  4. Explain when a two-sample t-test gives approximately the same result as a z-test for proportions, and when it fails. Include at least two concrete failure modes.

Solution

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