Design automated regression tests for an API

Q: Design automated regression tests for an API

This question evaluates proficiency in designing automated regression test suites for RESTful APIs, performance verification and monitoring, end-to-end test planning, and understanding trade-offs in test coverage within QA and software engineering.

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Question

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Scenario

A team is launching a new RESTful API (or a new version of an existing API). You are responsible for designing an automated regression test suite and for validating/monitoring performance improvements over time.

Questions

How would you design an automated regression test suite for the RESTful API? What major domains would you ensure are covered?
As QA, what tests would you design to verify performance improvements and how would you continuously monitor that performance in production?
If you had to create an end-to-end (E2E) test plan for your own full-stack project, how would you structure the plan (layers, environments, data, CI)?
From a QA perspective, what are the main benefits and limitations of aiming for very high test coverage?

Design automated regression tests for an API

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