Metrics question

Facebook's DAU is decreasing 15% per week from the last 3 weeks. Find out why.

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What this question tests

Tests structured, funnel-based root-cause diagnosis for a severe, sustained engagement decline, a classic 'diagnose a metric drop' interview scenario.

How to approach it

  1. Confirm scope and rule out measurement error: check whether the 15% weekly decline is logged correctly and consistent across platforms (iOS, Android, web) before assuming a real behavior shift.
  2. Segment by user cohort: new versus existing users, geography, and age group, since a broad DAU decline often masks a problem concentrated in one segment.
  3. Check recent product changes: any ranking algorithm updates, a new onboarding flow, or a controversial feature change in the timeframe the decline started.
  4. Check external factors: a major competitor launch (e.g. TikTok gaining share), a platform policy change (like iOS privacy changes affecting notifications), or a broader industry engagement trend.
  5. Once isolated, validate the leading hypothesis with a targeted analysis, like comparing the decline rate between users exposed and not exposed to a specific recent change, before proposing a fix.

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