Experiment Design: Validating a New Ads Ranking Model
Context
You operate an ads platform with an existing recommender/ranking model. Engineers built a new ML ranker that is hypothesized to improve outcomes. You need to run an online controlled experiment (A/B) to validate performance, choose appropriate metrics, assess significance, and make a rollout decision, including handling heterogeneous effects and ethics.
Tasks
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Experiment design
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What is your randomization unit, ramp plan, duration, and sample size approach?
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How will you guard against marketplace interference and data-quality issues?
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Metrics
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Define 2–3 primary KPIs and a set of guard-rail metrics. Explain why each matters for users, advertisers, and the platform.
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Practical significance
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An A/B test shows a +5% lift in CTR. How do you judge practical (business) significance vs. statistical significance?
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Heterogeneous effects
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CTR doubles for Indian males aged 18–55. What might this indicate, and what next steps do you take to validate and respond?
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Rollout decision
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If the test shows +5% CTR and +5% revenue, do you roll out globally? Explain your decision process, including trade-offs and ethical checks.