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Data Interview Question

Assessing User Retention Through Social Connections

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Requirements Clarification & Assessment

  1. Understanding the Problem:

    • Objective: Determine if a higher number of friends increases the likelihood of a Meta/Facebook member remaining active after six months.
    • Metrics:
      • Active User: Define what constitutes an active user (e.g., number of logins per week).
      • More Friends: Define what is considered a higher number of friends.
  2. Data Requirements:

    • Historical data on the number of friends each user has at a given time (e.g., 6 months ago).
    • User activity data to determine active vs. inactive status after six months.
    • Additional user attributes for controlling confounding variables (e.g., demographics, usage patterns).
  3. Study Design:

    • Prospective Study: Track users over time, starting with their current number of friends.
    • Retrospective Study: Use historical data to analyze past trends and outcomes.
  4. Hypothesis:

    • Null Hypothesis (H0): The number of friends does not significantly affect the likelihood of a user remaining active after six months.
    • Alternative Hypothesis (H1): A higher number of friends increases the likelihood of a user remaining active after six months.
  5. Outcome:

    • A statistical model or analysis result that indicates the relationship between the number of friends and user retention.