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Explain P-value, Confidence Interval, and Multiple Testing Adjustments

Last updated: Mar 29, 2026

Quick Overview

This question evaluates a data scientist's mastery of inferential statistics for A/B testing, encompassing p-values and confidence intervals, multiple-testing adjustments (Bonferroni vs Tukey’s HSD), Type I/II error interpretation, selection of Z versus t tests, and the practical implications of the Central Limit Theorem versus the Law of Large Numbers. It is commonly asked in the Statistics & Math domain to evaluate interpretation of experimental results, control of false positives across comparisons, and both conceptual understanding and practical application of hypothesis-testing assumptions in production experiments.

  • medium
  • Amazon
  • Statistics & Math
  • Data Scientist

Explain P-value, Confidence Interval, and Multiple Testing Adjustments

Company: Amazon

Role: Data Scientist

Category: Statistics & Math

Difficulty: medium

Interview Round: Technical Screen

##### Scenario AB-testing and inferential statistics for new product launches. ##### Question Define p-value and confidence interval and explain their relationship. How do you adjust for multiple testing (e.g., Bonferroni, Tukey)? Explain Type I and Type II errors with examples. When would you use a Z-test versus a t-test? Compare the Central Limit Theorem with the Law of Large Numbers. ##### Hints Focus on assumptions, formulas, and practical implications.

Quick Answer: This question evaluates a data scientist's mastery of inferential statistics for A/B testing, encompassing p-values and confidence intervals, multiple-testing adjustments (Bonferroni vs Tukey’s HSD), Type I/II error interpretation, selection of Z versus t tests, and the practical implications of the Central Limit Theorem versus the Law of Large Numbers. It is commonly asked in the Statistics & Math domain to evaluate interpretation of experimental results, control of false positives across comparisons, and both conceptual understanding and practical application of hypothesis-testing assumptions in production experiments.

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Amazon
Jul 12, 2025, 6:59 PM
Data Scientist
Technical Screen
Statistics & Math
40
0

A/B Testing and Inferential Statistics for a New Product Launch

You are running online A/B experiments to evaluate a new product launch. Assume standard randomized assignment, independent users/sessions, and a binary primary metric (e.g., conversion), unless otherwise noted.

Answer the following:

  1. Define the p-value and a confidence interval (CI), and explain their relationship.
  2. How do you adjust for multiple testing? Briefly describe and contrast Bonferroni and Tukey’s HSD, and note when you would use each.
  3. Explain Type I and Type II errors with concrete A/B testing examples.
  4. When would you use a Z-test versus a t-test? State assumptions and typical A/B testing choices.
  5. Compare the Central Limit Theorem (CLT) with the Law of Large Numbers (LLN), including practical implications for experiment analysis.

Solution

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