Unseen Counterfactuals

← Back to Two Sigma Interview Questions

Question

A voluntary coaching course is offered to 100 applicants. Forty choose to attend: 30 pass a later qualification test and 10 fail. Of the 60 who do not attend, 24 pass and 36 fail. Everyone's attendance and outcome are observed, but attendance was not randomly assigned.

Suppose coaching can never turn a person who would have passed without coaching into someone who fails with coaching. For each applicant, define the causal benefit as their outcome with coaching minus their outcome without it, where \(\text{pass}=1\) and \(\text{fail}=0\).

What are the sharpest possible lower and upper bounds on the average causal benefit across all 100 applicants? Exhibit two hypothetical assignments of missing counterfactual outcomes that attain the bounds. How do these bounds compare with simply subtracting the observed pass rates?

Hint 1

Write each person's two potential outcomes as \((Y(0),Y(1))\). Monotonicity rules out \((1,0)\), leaving only \((0,0)\), \((0,1)\) and \((1,1)\).

Only attendees who passed and non-attendees who failed could be of type \((0,1)\). Count those two groups to bound the number actually helped, then construct the extreme assignments.

Check your answer

Join our Newsletter and Receive the Latest Updates!

Main Links

Trade Courses Assessments Interview Prep Contact Us

Social Media

Facebook Instagram YouTube

Legal

Terms and Conditions Privacy Policy Privacy settings

Talent Acquisition

Looking to hire exceptional quant talent?
See how we can help.

© 2026 EverythingQuant. All Rights Reserved.