Decide content volume and price under uncertainty
Capital OneData Scientist · HR Screen
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This question evaluates a candidate's competency in pricing and content-production optimization under uncertainty, including defining optimization objectives and constraints, specifying necessary metrics, and assessing sensitivity to changes in variable costs.
How would you decide how many shows to produce and what subscription price to set for an online-content startup? Lay out: a) an optimization objective (e.g., maximize monthly profit or LTV) and constraints (budget, price cap at $20, production lead times); b) the minimum data you need (demand elasticity to price and content, engagement lift per show, acquisition curve, churn); c) how you would estimate that data (A/B tests, conjoint analysis, holdout-based uplift modeling); and d) how your recommendation would change if variable cost increased from $4 to $6 per subscriber per month.
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