Katkat

Quantify database bug cost/benefit

Capital OneData Scientist · Technical Screen

Last updated

This question evaluates a candidate's ability to perform cohort-based financial impact analysis and basic statistical arithmetic to quantify revenue and cost deltas caused by registration-state errors.

From January 1 to March 31 (3 months), a registration bug affects Premium users. A Premium user must be registered to be recognized for a 2% commission; unregistered users are treated as 1% commission; the $1.25/month admin cost applies only when registered. Due to the bug: (i) Premium users who cancel remain registered, and (ii) new Premium users are not registered. Each month, 400 Premium users cancel and 2,000 new Premium users join. Assume average spending: Premium $625/month; Regular $500/month. Commission is company revenue; admin is a company cost. Cohorts persist until fix on April 1 (e.g., January’s cancelers remain registered for Jan–Mar; February’s for Feb–Mar; etc.). Compute the net profit impact over the 3 months versus correct functioning, itemizing revenue and cost deltas for each cohort and giving the total dollar impact.