A feature was launched to all users at once, so there is no control group. How would you estimate its impact?
What the interviewer wants to hear
- Acknowledge a simple before-after comparison is biased by trends and seasonality
- Difference-in-differences using an unaffected group or region
- Interrupted time series or forecasting the counterfactual
- Compare adopters vs non-adopters carefully with matching, noting selection bias
- State assumptions and uncertainty clearly
Model answer
A simple before versus after is risky because seasonality, marketing campaigns or general growth can explain the change. So I try to build a believable counterfactual, meaning what would have happened without the feature. If some group was not affected, like a region, platform or an older app version, I use difference-in-differences: compare the change in the affected group with the change in the unaffected group, after checking their trends were parallel before launch. If everyone got it, I can use an interrupted time series: model the historical trend and seasonality, forecast the post-launch period, and compare actuals against the forecast. Comparing users who used the feature with those who did not is tempting but has selection bias, since engaged users adopt features first; matching on past behaviour helps somewhat. I present a range, not a single number, and clearly state the assumptions.
Can you answer it under time pressure?
Take a timed hard round and get scored on every answer.
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