Start by clarifying the treatment and control groups and the assumptions needed for causal inference, then outline how you would implement both propensity score matching and difference-in-differences, addressing key challenges like common support, pre-trends, and staggered rollout. Finally, discuss how you would validate the results through sensitivity analyses and communicate them to leadership with appropriate caveats.
Pro tip: Emphasize that the choice between PSM and DiD depends on the specific context and data structure, and that combining them (e.g., using PSM to create a matched sample for DiD) can sometimes yield more robust estimates. Also, highlight the importance of pre-registering your analysis plan to avoid p-hacking and to build trust with stakeholders.
Clearly specify who received the notification (treatment) and who did not (control), ensuring that the control group is comparable. Consider using a subset of users who were eligible but not exposed due to technical or timing reasons.
Select pre-treatment covariates that affect both the likelihood of receiving the notification and the outcome (7-day retention). These should include user demographics, past engagement metrics, and any other relevant behavioral variables.
Estimate propensity scores using logistic regression or machine learning, then match treated and control units with similar scores. Check common support by examining the overlap of propensity score distributions and trimming non-overlapping regions.
Identify a pre-treatment period and a post-treatment period, and compare changes in retention between treatment and control groups. For staggered rollout, use modern DiD methods (e.g., Callaway & Sant'Anna, Sun & Abraham) to account for heterogeneous treatment effects.
Conduct pre-trend checks for DiD, sensitivity analyses for unobserved confounding (e.g., Rosenbaum bounds for PSM, placebo tests for DiD), and cluster standard errors at the appropriate level (e.g., user or region). Communicate findings to leadership with clear assumptions, limitations, and confidence intervals.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.