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Design metrics and geo A/B for new feature

Last updated: Mar 29, 2026

Quick Overview

This question evaluates skills in experimental design, metric definition and diagnostic analysis for marketplace features, covering geo-clustered A/B testing, hypothesis formulation, power/MDE calculations, instrumentation, contamination handling, privacy considerations and incremental revenue estimation.

  • hard
  • Meta
  • Analytics & Experimentation
  • Data Scientist

Design metrics and geo A/B for new feature

Company: Meta

Role: Data Scientist

Category: Analytics & Experimentation

Difficulty: hard

Interview Round: Onsite

You propose a new Marketplace feature, Verified Seller Badges, intended to increase buyer trust and monetization without harming user experience. 1) Mission and hypotheses: State your mission precisely and write primary and secondary hypotheses that are falsifiable. 2) Metrics: Define a North Star Metric (e.g., weekly GMV per active buyer) and 4–6 supporting metrics, including at least two counter/guardrail metrics (e.g., fraud reports per 1,000 transactions, session crash rate, ad revenue per session). Explain why each is diagnostic and how to compute it at user- and geo-level granularity. 3) Experiment design: Propose a geo-level clustered A/B test. Specify: cluster unit (city/metro), stratification variables (e.g., active buyers, baseline GMV, seasonality, device mix), matching strategy, number of clusters per arm, traffic ramp plan, duration, and how you will handle contamination, spillovers, and staggered rollouts. 4) Sample size and power: Show how you would estimate the minimum detectable effect for the NSM, including variance assumptions and any design effects due to clustering. 5) Instrumentation: List the exact events/attributes you need in logs to compute all metrics and diagnose mechanism (e.g., badge impressions, seller profile views, message initiations, purchase confirmations). 6) Decision framework: Suppose the test shows +2.0% (p<0.05) on NSM, −0.3% (ns) on sessions per user, and +0.8 bps in fraud reports (p=0.06). Explain the launch decision, including how you would incorporate engineering cost, staffing, and operational feasibility. Show a back-of-envelope estimate of potential incremental revenue assuming $0.50 revenue per incremental purchase and the observed lift. 7) External data: Name one third-party signal you might use to improve targeting, and discuss privacy/compliance considerations and how you would validate its incremental value without bias.

Quick Answer: This question evaluates skills in experimental design, metric definition and diagnostic analysis for marketplace features, covering geo-clustered A/B testing, hypothesis formulation, power/MDE calculations, instrumentation, contamination handling, privacy considerations and incremental revenue estimation.

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Meta
Oct 13, 2025, 9:49 PM
Data Scientist
Onsite
Analytics & Experimentation
2
0

Marketplace Experiment: Verified Seller Badges

Context: You are evaluating a new Marketplace feature, Verified Seller Badges, designed to improve buyer trust and monetization without harming user experience. Propose an end-to-end experiment and analysis plan.

  1. Mission and Hypotheses
  • State a precise mission for the feature.
  • Write falsifiable primary and secondary hypotheses (with clear success/fail thresholds).
  1. Metrics
  • Define a single North Star Metric (e.g., weekly GMV per active buyer).
  • Provide 4–6 supporting metrics, including at least two counter/guardrail metrics (e.g., fraud reports per 1,000 transactions, session crash rate, ad revenue per session).
  • For each metric, explain why it is diagnostic and how to compute it at both user- and geo-level granularity.
  1. Experiment Design (Geo-Level Clustered A/B)
  • Specify the cluster unit (e.g., city/metro) and why.
  • Define stratification variables (e.g., active buyers, baseline GMV, seasonality, device mix).
  • Describe the matching strategy, number of clusters per arm, traffic ramp plan, duration.
  • Explain how you will handle contamination, spillovers, and staggered rollouts.
  1. Sample Size and Power
  • Show how you estimate the minimum detectable effect (MDE) for the North Star Metric, including variance assumptions and design effects due to clustering.
  1. Instrumentation
  • List the exact events and attributes needed in logs to compute all metrics and to diagnose the mechanism (e.g., badge impressions, seller profile views, message initiations, purchase confirmations).
  1. Decision Framework
  • Suppose the test reads: +2.0% (p<0.05) on NSM, −0.3% (ns) on sessions/user, and +0.8 bps in fraud reports (p=0.06).
  • Explain your launch decision, incorporating engineering cost, staffing, and operational feasibility.
  • Provide a back-of-the-envelope incremental revenue estimate assuming $0.50 revenue per incremental purchase and the observed lift.
  1. External Data
  • Name one third-party signal to improve targeting.
  • Discuss privacy/compliance considerations and how to validate its incremental value without bias.

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