1. How do you measure LTV and ROI??

Roi is calculated by taking the difference between the margin and the cost of customer
acquisition (which is the reward system)

LTV is theoretically calculated by considering the retention rate applied over the current
margins contributed by a user over their engagement with the application. Since we don't
have the data regarding these metrics here, we considered rake minus rewards as a proxy
indicating the customer's LTV.

2. Which configuration among the 2 options is better and why?

Metrics that are considered--

Percentage of users who have positive rake minus rewards and the average rake minus
reward per user.

In both of these metrics group B does better(pls refer excel). Hence Group B is the better
configuration.

3. How much is the optimal reward amount that should be given to ensure
return on investment is maximised?
Considering the ROIs of group B, the optimal reward to be given must be the least reward
points that give a positive ROI.