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Design experiments for marketplace balance

Last updated: Mar 29, 2026

Quick Overview

This question evaluates a data scientist's competency in experimental design, causal inference, metric definition, statistical power calculation, and operational rollout planning for two-sided marketplaces, and it is commonly asked to assess the ability to account for interference, supply constraints, spillovers, and contamination when measuring treatment effects. Categorized under Analytics & Experimentation, it tests both conceptual understanding and practical application by probing exposure and eligibility definitions, metric and guardrail specification, sample-size and clustering adjustments, recognition of heterogeneous treatment effects and sequential monitoring concerns, variance-reduction considerations, and rollout and fallback decision-making.

  • Medium
  • Lyft
  • Analytics & Experimentation
  • Data Scientist

Design experiments for marketplace balance

Company: Lyft

Role: Data Scientist

Category: Analytics & Experimentation

Difficulty: Medium

Interview Round: Onsite

You propose a new supplier prioritization (ranking) policy intended to increase order completion in a two-sided marketplace with known interference between users and suppliers. (a) Experiment design: Choose an appropriate design (user-level randomization, supplier-level randomization, geo-clustered test, or switchback). Justify your choice given network effects, supply constraints, and spillovers. Define exposure and eligibility, bucketing, and how you will prevent cross-contamination. (b) Metrics: Define the primary metric (e.g., completion rate or GMV per session) and guardrails (e.g., cancellation rate, supplier wait time, fairness across cities/suppliers). Specify event triggers and the exact aggregation level. (c) Power: Baseline completion rate is 60%; the minimum detectable effect is +2 percentage points (absolute). Compute the per-variant sample size for a two-sided test with α=0.05 and power=0.80 under independent Bernoulli outcomes. Then adjust for clustering with a design effect of 1.2 and state the final sample size. Show formulas. (d) Analysis: Detail how you will handle heterogeneous treatment effects (by city, time-of-day, supplier capacity quartile), sequential monitoring without inflating Type I error, and variance reduction (e.g., CUPED or covariate adjustment). Explain how you would detect and correct for marketplace rebalancing artifacts (e.g., improvements in treated geos causing degradations elsewhere). (e) Rollout: Propose a ramp plan and a fallback decision rule if guardrails breach for two consecutive days.

Quick Answer: This question evaluates a data scientist's competency in experimental design, causal inference, metric definition, statistical power calculation, and operational rollout planning for two-sided marketplaces, and it is commonly asked to assess the ability to account for interference, supply constraints, spillovers, and contamination when measuring treatment effects. Categorized under Analytics & Experimentation, it tests both conceptual understanding and practical application by probing exposure and eligibility definitions, metric and guardrail specification, sample-size and clustering adjustments, recognition of heterogeneous treatment effects and sequential monitoring concerns, variance-reduction considerations, and rollout and fallback decision-making.

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Lyft logo
Lyft
Oct 13, 2025, 9:49 PM
Data Scientist
Onsite
Analytics & Experimentation
14
0

You propose a new supplier prioritization (ranking) policy intended to increase order completion in a two-sided marketplace with known interference between users and suppliers. (a) Experiment design: Choose an appropriate design (user-level randomization, supplier-level randomization, geo-clustered test, or switchback). Justify your choice given network effects, supply constraints, and spillovers. Define exposure and eligibility, bucketing, and how you will prevent cross-contamination. (b) Metrics: Define the primary metric (e.g., completion rate or GMV per session) and guardrails (e.g., cancellation rate, supplier wait time, fairness across cities/suppliers). Specify event triggers and the exact aggregation level. (c) Power: Baseline completion rate is 60%; the minimum detectable effect is +2 percentage points (absolute). Compute the per-variant sample size for a two-sided test with α=0.05 and power=0.80 under independent Bernoulli outcomes. Then adjust for clustering with a design effect of 1.2 and state the final sample size. Show formulas. (d) Analysis: Detail how you will handle heterogeneous treatment effects (by city, time-of-day, supplier capacity quartile), sequential monitoring without inflating Type I error, and variance reduction (e.g., CUPED or covariate adjustment). Explain how you would detect and correct for marketplace rebalancing artifacts (e.g., improvements in treated geos causing degradations elsewhere). (e) Rollout: Propose a ramp plan and a fallback decision rule if guardrails breach for two consecutive days.

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