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Choosing the Randomisation Unit in a Marketplace
A food-delivery marketplace wants to test a new courier dispatch algorithm that assigns orders to couriers faster. The primary metric is delivery time; the guardrail is courier utilisation.
- Explain why randomising individual orders (or customers) to the new algorithm produces a biased estimate of the effect of a full rollout.
- Propose a design that avoids the bias, and describe its main cost.
- Separately, a colleague suggests randomising by page view for a change to the restaurant-ranking algorithm and reporting 30-day customer retention. What is wrong with that?
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