Recommend a Decision After a Nonsignificant Experiment
Quick Overview
Make a product decision after a nonsignificant A/B test. Interpret p-values and confidence intervals, separate practical from statistical significance, and choose evidence-aware next steps.
Recommend a Decision After a Nonsignificant Experiment
Company: Yelp
Role: Data Scientist
Category: Analytics & Experimentation
Difficulty: easy
Interview Round: Technical Screen
An A/B test estimates a 2.0% relative improvement in a primary metric, with a two-sided 95% confidence interval from -0.5% to 4.5% and (p=0.12). Guardrail metrics show no material harm. A stakeholder believes the change is still valuable.
Explain statistical significance and make a recommendation. Address practical significance, uncertainty, power, the original decision rule, and what additional evidence would justify shipping, iterating, or stopping.
### Constraints & Assumptions
- The experiment and primary metric were specified before results were examined.
- There was no sample-ratio mismatch or known instrumentation failure.
- The confidence interval is for the same relative effect reported in the estimate.
- Do not reinterpret “not significant” as proof of no effect.
### Clarifying Questions to Ask
- What minimum effect would make the change worthwhile after implementation and maintenance costs?
- Was the experiment powered for that effect, and did it reach its planned sample size?
- Is the decision reversible, and what is the cost of a false positive or false negative?
- Were multiple variants, metrics, or interim looks analyzed?
```hint Compare the interval with the decision threshold
The interval contains zero, but it may also contain effects that are meaningfully positive or too small to matter.
```
### What a Strong Answer Covers
- A correct interpretation of the p-value and confidence interval.
- Separation of evidence strength from business value.
- Recognition that the result is inconclusive, not necessarily negative.
- A recommendation conditioned on the minimum worthwhile effect and risk.
- A principled next step rather than post hoc metric shopping.
### Follow-up Questions
- How would your advice change if the entire interval were below the minimum worthwhile effect but above zero?
- When is a non-inferiority design more appropriate?
- How can a Bayesian decision analysis incorporate implementation cost and reversibility?
Quick Answer: Make a product decision after a nonsignificant A/B test. Interpret p-values and confidence intervals, separate practical from statistical significance, and choose evidence-aware next steps.
An A/B test estimates a 2.0% relative improvement in a primary metric, with a two-sided 95% confidence interval from -0.5% to 4.5% and (p=0.12). Guardrail metrics show no material harm. A stakeholder believes the change is still valuable.
Explain statistical significance and make a recommendation. Address practical significance, uncertainty, power, the original decision rule, and what additional evidence would justify shipping, iterating, or stopping.
Constraints & Assumptions
The experiment and primary metric were specified before results were examined.
There was no sample-ratio mismatch or known instrumentation failure.
The confidence interval is for the same relative effect reported in the estimate.
Do not reinterpret “not significant” as proof of no effect.
Clarifying Questions to Ask Guidance
What minimum effect would make the change worthwhile after implementation and maintenance costs?
Was the experiment powered for that effect, and did it reach its planned sample size?
Is the decision reversible, and what is the cost of a false positive or false negative?
Were multiple variants, metrics, or interim looks analyzed?
What a Strong Answer Covers Guidance
A correct interpretation of the p-value and confidence interval.
Separation of evidence strength from business value.
Recognition that the result is inconclusive, not necessarily negative.
A recommendation conditioned on the minimum worthwhile effect and risk.
A principled next step rather than post hoc metric shopping.
Follow-up Questions Guidance
How would your advice change if the entire interval were below the minimum worthwhile effect but above zero?
When is a non-inferiority design more appropriate?
How can a Bayesian decision analysis incorporate implementation cost and reversibility?