This is basically a full experiment design dissertation compressed into one interview question.
Start by framing the experiment as a cluster-randomized trial at the business level to handle interference from shared customers, then detail stratification by volume and take-up propensity. Explain how you would size the experiment accounting for overdispersion, monitor sequentially with alpha-spending, and pre-register an analysis plan that includes ITT and TOT estimates with a clear decision rule.
Pro tip: Emphasize that with heavy-tailed volumes, you should use a log transformation or a robust variance estimator for revenue per business, and consider a CUPED adjustment using pre-experiment data to increase power. Also, pre-register a non-inferiority margin for Resolved-Within-24h Rate to ensure you don't degrade support quality while chasing revenue.
Randomize at the business level to avoid contamination from shared customers, and stratify by historical chat volume (e.g., top 1%, 1-10%, rest) and predicted take-up propensity to balance heavy tails and improve power.
Use simulation or negative binomial models to account for overdispersion in chat volumes; calculate required sample size to detect a minimum detectable effect (e.g., 5% lift in revenue per business) with 80% power and 5% significance, considering the 20-30% take-up.
Acknowledge interference risks from shared customers across businesses; use cluster randomization and consider a design that isolates shared customers. Plan to estimate both ITT (effect of assignment) and TOT (effect of subscription) using instrumental variables or compliance-adjusted analysis.
Use group sequential testing with alpha-spending (e.g., O'Brien-Fleming) to allow early stopping for efficacy or futility, and pre-register a decision rule: roll out if revenue lift ≥ X and Resolved-Within-24h Rate non-inferior; iterate if revenue lift positive but quality degraded; stop if no lift or harm.
Document primary and secondary metrics, handling of outliers, transformations, covariates (e.g., CUPED), and multiple testing corrections. Specify the model (e.g., mixed-effects or GEE) and sensitivity analyses to ensure robustness.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.