Evaluate Impact of $1 Fee on Fast-Food Profitability
DoorDashData Scientist · Onsite
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This interview question evaluates metric design, causal reasoning, experiment setup, diagnostics, SQL/statistical checks, and recommendations in a realistic interview setting. A strong answer for Evaluate Impact of $1 Fee on Fast-Food Profitability states assumptions, handles edge cases, explains trade-offs, and shows how to validate the result clearly.
Scenario
About 10 % of fast-food restaurants are unprofitable. Product wants to add a $1 delivery-fee surcharge to those orders to cover the deficit.
Question
Design an experiment to evaluate the impact of the $1 fee on restaurant-level profitability, order volume, and customer satisfaction. What specific techniques would you employ to increase the statistical power of this experiment?
Hints
Consider stratified randomization, CUPED, longer experiment horizon, geo-testing, or covariate blocking to reduce variance.
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