Design an A/B test for a new shop-ads algorithm

Quick Overview

Evaluates experimental-design and data-analysis skills—specifically randomization and unit selection, metric definition and guardrails, power and sample-size reasoning, diagnosis of conflicting signals, and common experimentation pitfalls—in the Analytics & Experimentation category for a Data Scientist position.

Design an A/B test for a new shop-ads algorithm

Company: Meta

Role: Data Scientist

Category: Analytics & Experimentation

Difficulty: medium

Interview Round: Technical Screen

A new ranking/promotion algorithm will change which **shop ads** are shown (and their order). You are asked: “How do we know if this new algo is good?” Design an online experiment and analysis plan. Address the following: 1) **Randomization / experiment unit** - Would you split by **user**, **session**, or something else (e.g., geo, device)? - What are the tradeoffs (interference, contamination, variance, returning users, cross-session effects)? 2) **Primary and guardrail metrics** - Propose multiple plausible success metrics (e.g., CTR, CVR, revenue, advertiser ROI, long-term retention) and explain tradeoffs. - Include at least one guardrail for user experience and one for marketplace health. 3) **Power / sample size** - Describe how you would do a power analysis (what baseline rates you need, what MDE means, how you handle skewed revenue). - Mention what you would do if revenue is heavy-tailed (e.g., winsorization, log transform, CUPED). 4) **Conflicting metric scenario** - Suppose **CTR increases** but **revenue decreases**. List at least 4 plausible causes (product and statistical), and how you would debug and decide. 5) **Common experiment pitfalls** - List common issues (SRM, bots/fraud, novelty effects, duration, multiple testing), and how you would monitor/mitigate them.

Quick Answer: Evaluates experimental-design and data-analysis skills—specifically randomization and unit selection, metric definition and guardrails, power and sample-size reasoning, diagnosis of conflicting signals, and common experimentation pitfalls—in the Analytics & Experimentation category for a Data Scientist position.

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Oct 14, 2025, 12:00 AM
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A new ranking/promotion algorithm will change which shop ads are shown (and their order). You are asked: “How do we know if this new algo is good?”

Design an online experiment and analysis plan. Address the following:

  1. Randomization / experiment unit
  • Would you split by user , session , or something else (e.g., geo, device)?
  • What are the tradeoffs (interference, contamination, variance, returning users, cross-session effects)?
  1. Primary and guardrail metrics
  • Propose multiple plausible success metrics (e.g., CTR, CVR, revenue, advertiser ROI, long-term retention) and explain tradeoffs.
  • Include at least one guardrail for user experience and one for marketplace health.
  1. Power / sample size
  • Describe how you would do a power analysis (what baseline rates you need, what MDE means, how you handle skewed revenue).
  • Mention what you would do if revenue is heavy-tailed (e.g., winsorization, log transform, CUPED).
  1. Conflicting metric scenario
  • Suppose CTR increases but revenue decreases . List at least 4 plausible causes (product and statistical), and how you would debug and decide.
  1. Common experiment pitfalls
  • List common issues (SRM, bots/fraud, novelty effects, duration, multiple testing), and how you would monitor/mitigate them.
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