Metrics and KPI Fundamentals Questions

Core principles and practical fluency for defining, measuring, and interpreting metrics and key performance indicators. Candidates should be able to select meaningful metrics aligned to business objectives rather than vanity metrics, explain the difference between a metric and a target, and distinguish leading indicators from lagging indicators. Coverage includes decomposing complex outcomes into actionable component metrics, writing precise metric definitions such as what counts as a daily active user and monthly active user, calculating common metrics such as engagement rate, churn rate and conversion rates, establishing baselines and sensible targets, and interpreting signal versus noise including awareness of statistical variability. Also includes using segmentation and cohort analysis to diagnose metric movements and recommending two to three meaningful metrics for a hypothetical problem with justification and action plans.