Determine Key Metrics for Spend-Tracker Launch Decision

Q: Determine Key Metrics for Spend-Tracker Launch Decision

This question evaluates the candidate's competency in A/B testing, experiment analysis, segmentation, metric selection, and business-oriented cost–benefit reasoning, and it sits in the Analytics & Experimentation domain of Data Science while testing practical application supported by conceptual understanding.

Q: How do I approach Analytics & Experimentation interview questions?

Analytics & Experimentation questions require understanding of core concepts and practice. PracHub provides solutions with explanations to help you master analytics & experimentation interviews.

Question

A/B Decision Framework: Spend-Tracker Feature

Context

A fintech app ran an A/B test (Test vs. Control) on a new Spend-Tracker feature. Results are split by two user segments:

High-Income
Non-High-Income

Available metrics include:

Average revenue (per user)
Total revenue
Profit
Acquisition cost

Task

Decide whether to launch the Spend-Tracker and in which segments. Specifically:

State the factors, calculations, and decision thresholds you would use.
Identify the two or three metrics you would prioritize and explain why.
Explain how you would interpret and act on divergent results between High-Income and Non-High-Income users.
List additional analyses or data you would request before a final launch decision.

Hints: Compare relative lift vs cost, test for statistical significance, check segment interaction effects, and weigh long-term LTV against acquisition spend.

Determine Key Metrics for Spend-Tracker Launch Decision

A/B Decision Framework: Spend-Tracker Feature

Context

Task

Solution

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