This was a lot to hold in your head at once.
Structure your answer around the causal inference roadmap: start with identification assumptions (conditional ignorability, positivity, SUTVA), then detail propensity score estimation and matching mechanics, followed by balance diagnostics and effect estimation. Emphasize that PSM is not a magic bullet—discuss its limitations and when to pivot to alternative methods like doubly robust estimation or sensitivity analysis.
Pro tip: Always frame PSM as a design step, not an analysis step: the goal is to create a balanced pseudo-population that mimics randomization. Mention that you would pre-register the analysis plan and check balance before looking at outcomes to avoid p-hacking.
Define the treatment (feature adoption), outcome (7-day retention), and target estimand (ATE vs ATT). State the identification assumptions: conditional ignorability (no unmeasured confounders), positivity (overlap), and SUTVA.
Choose pre-treatment covariates that predict both treatment and outcome, avoiding post-treatment variables. Use logistic regression or ML (e.g., gradient boosting) to estimate propensity scores, and check overlap via histograms or propensity score distributions.
Apply matching algorithm (e.g., nearest neighbor with caliper, optimal matching) to create matched sample. Check balance using standardized mean differences (SMD < 0.1) and variance ratios; iterate on model specification if balance is poor.
Estimate ATE/ATT on matched sample using difference in means or weighted regression. Quantify uncertainty via bootstrap or Abadie-Imbens standard errors, and conduct sensitivity analysis for unmeasured confounding (e.g., Rosenbaum bounds).
If PSM falls short (e.g., poor overlap, hidden bias), consider doubly robust methods (AIPW), instrumental variables, regression discontinuity, or synthetic control. Discuss the trade-offs and when to recommend a randomized experiment.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.