Business judgment

Interview question

seniorlevel
15 minsuggested time
2Data scientist, Data analyst

A four-week pilot of a pricing-recommendation model on 20% of routes shows revenue +1.1% against control, with a 95% interval of -0.3% to +2.5%. Annual revenue across all routes is 80 million and running the system costs 400,000 a year (all hypothetical). The sponsor wants to scale to all routes next month. What do you recommend?

Tests: Turning an uncertain experimental result into a decision using break-even, expected value and the value of more information, rather than a p-value.

day 16 day 4 day 5 day 26