This is the kind of question that sounds manageable until you're actually in it.
Start by defining selection bias as a distortion in the estimated treatment effect due to non-random assignment, then systematically explain three mechanisms (self-selection, confounding, and differential attrition) with their bias directions. Next, propose two methods like instrumental variables and propensity score matching, detailing their assumptions and tests, and finish with a numerical example contrasting naive and corrected estimates.
Pro tip: Emphasize that opt-in experiments often violate SUTVA and positivity, so always check overlap and consider sensitivity analysis to unmeasured confounding; this shows depth beyond textbook answers.
Explain selection bias as a systematic difference between treated and control groups due to non-random assignment, leading to biased causal estimates. Highlight why it matters in opt-in settings like discount banners.
Describe at least three mechanisms: self-selection (users with higher intent opt in, biasing estimate upward), confounding (unobserved factors like user engagement affect both opt-in and conversion, direction depends on correlation), and differential attrition (treated users more likely to drop out, biasing estimate downward if dropouts have lower conversion).
Suggest two methods: instrumental variables (IV) and propensity score matching (PSM). For IV, assumption is instrument affects treatment but not outcome except through treatment; test via exclusion restriction and relevance. For PSM, assumption is no unmeasured confounders; test via balance checks and sensitivity analysis.
Create a small dataset where naive estimate shows a large effect, but after applying IV or PSM, the estimate shrinks toward the true effect. Show calculations step-by-step to illustrate the correction.
Recap the mechanisms, methods, and example, emphasizing the importance of assumptions and testing in causal inference for opt-in experiments.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.