Identify research to improve business

Quick Overview

This question evaluates a software engineer's competency in analytics and experimentation strategy, including defining objectives and key metrics, hypothesis generation and prioritization, experiment and pilot design, sample sizing and instrumentation, phased planning, data requirements, risk mitigation, and success criteria.

Identify research to improve business

Company: Microsoft

Role: Software Engineer

Category: Analytics & Experimentation

Difficulty: medium

Interview Round: Technical Screen

Propose research directions and solution approaches to measurably improve our business outcomes. Which key metrics would you target and why? How would you generate and prioritize hypotheses, design experiments or pilots, and estimate impact and cost? Outline a phased plan, required data, risks, and success criteria.

Quick Answer: This question evaluates a software engineer's competency in analytics and experimentation strategy, including defining objectives and key metrics, hypothesis generation and prioritization, experiment and pilot design, sample sizing and instrumentation, phased planning, data requirements, risk mitigation, and success criteria.

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Sep 6, 2025, 12:00 AM
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Analytics & Experimentation Strategy to Improve Business Outcomes

Context

Assume you are a software engineer interviewing for a role focused on analytics and experimentation. The product is a large-scale software platform (web + mobile) with free and paid tiers. The business cares about user growth, engagement, reliability, and subscription revenue.

Task

Propose research directions and solution approaches to measurably improve business outcomes.

Requirements

  1. Objectives and Metrics
    • Define a clear Objective and a small set of Key Metrics (including guardrails). Explain why these matter and how they ladder to business outcomes.
  2. Hypothesis Generation and Prioritization
    • Describe how you would generate hypotheses (e.g., from data, user research, logs) and how you would prioritize them (e.g., RICE/ICE, expected value).
  3. Experiments and Pilots
    • Explain experiment/pilot designs (A/B, cluster/geo, switchback), sample sizing/power/MDE, ramp plans, instrumentation, and success criteria.
    • Show how you would estimate impact and cost before running.
  4. Phased Plan
    • Outline a 3–6 month plan with phases, deliverables, owners, and decision checkpoints.
  5. Data Requirements
    • List the minimal data and telemetry needed to support analysis and decisions.
  6. Risks and Mitigations
    • Identify major risks (statistical, product, operational, ethical) and how to mitigate them.
  7. Success Criteria
    • Define what success looks like for both business outcomes and experimentation capability.
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