Understand Propensity Score Matching in Business Analytics
Company: Walmart Labs
Role: Data Scientist
Category: Statistics & Math
Difficulty: medium
Interview Round: Onsite
##### Scenario
Interview for a data-science role on a growth analytics team that needs to estimate treatment effects from observational product data.
##### Question
What is Propensity Score Matching (PSM) and in which business situations would you apply it?
2) List the assumptions required for PSM to yield unbiased causal estimates.
3) How do you assess whether the matching achieved good covariate balance?
##### Hints
Discuss ignorability, common support, balance diagnostics, and potential limitations of PSM.
Quick Answer: This question evaluates understanding of propensity score matching as a causal inference technique and related competencies in estimating treatment effects from observational product data, assessing required assumptions for unbiased estimates, and measuring covariate balance; the domain tested is Statistics & Math for a Data Scientist role.