← Sig Interview Insights

Sig·Software Engineer·Technical Phone Screen·Intermediate

Intermediate
May 2026

Summary

SIG quant engineer interview, got hit with a stats/probability design question that was more involved than I expected. One round, fairly technical, felt like they wanted to see how you structure a full hypothesis testing argument from scratch.

Questions Asked (1)

Q1

You have n players in a game and you've recorded win/loss results over many rounds. How do you test whether the game is purely luck versus skill-driven? Walk through building a chi-square goodness-of-fit test, including the null hypothesis, the test statistic, degrees of freedom, and any limitations you'd flag.

A/B Testing & ExperimentationTechnical Trade-offs
Author's notes

This took me a second to land on the right framing.

Create a free account to read the full note

AI HintsAI Generated

Suggested Approach

Start by framing the null hypothesis that outcomes are purely random (luck), then outline the chi-square goodness-of-fit test using observed vs. expected win distributions. Walk through the calculation of the test statistic, degrees of freedom, and p-value, and finish by discussing limitations and practical interpretations.

Pro tip: Emphasize that rejecting the null doesn't prove skill—it only suggests the game isn't purely luck; you need further analysis (e.g., consistency across players) to infer skill. Also, mention that with large n, even tiny deviations can be significant, so effect size matters.

1. Define the null and alternative hypotheses

Null hypothesis (H0): The game is purely luck, meaning each player's win probability is equal (e.g., 0.5 for two-player games) and outcomes are independent. Alternative (H1): The game involves skill, so win probabilities differ across players.

2. Collect and organize the data

Aggregate win/loss records for each player over many rounds. For a chi-square goodness-of-fit test, you need observed counts of wins (and losses) per player, and compute expected counts under H0 (e.g., total wins / n for each player).

3. Compute the chi-square test statistic

Calculate χ² = Σ (O_i - E_i)² / E_i, where O_i is the observed number of wins for player i and E_i is the expected number of wins under H0. Ensure expected counts are sufficiently large (e.g., ≥5) for validity.

4. Determine degrees of freedom and p-value

Degrees of freedom (df) = number of categories - 1 = n - 1 (if comparing n players). Compare the test statistic to a chi-square distribution with df to obtain the p-value. If p < α (e.g., 0.05), reject H0.

5. Interpret results and discuss limitations

If H0 is rejected, conclude the game is not purely luck, but note that this doesn't prove skill—it could be due to other factors (e.g., player advantages). Limitations: assumes independence, large sample required, sensitive to sample size, and doesn't measure effect size or skill magnitude.

Key Points to Mention

  • Null hypothesis: game is purely luck (equal win probabilities).
  • Chi-square statistic formula and expected counts calculation.
  • Degrees of freedom = n - 1 for n players.
  • Assumptions: independent outcomes, sufficiently large expected counts (≥5).
  • Limitations: rejection doesn't prove skill, large n can inflate significance, effect size needed.
  • Alternative approaches: permutation tests, logistic regression with player effects.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.