- I have data on a company who instituted a feature where they stop promoting items listed after X hours. And they are interested in how that non-promotion affects the amount of "likes" on an item. The hypothesis is that it decreases them
- But the thing is, likes already decrease over time anyway. So we really want to compare slopes before and after non-promotion, where dependent variable is likes per hour
- Assume we can't do a controlled experiment
𝑙𝑜𝑔(𝑦_t)=α+𝛽1𝑇 + 𝛽2𝑋+ 𝛽3𝑋*𝑇+ε
where 𝑦_t = likes in specific hour, 𝑇 = hour since initially posted, 𝑋 = indicator variable for after X hours (so promotion stops) and 𝑋*𝑇 = time since posted * Is after X hours.
And 𝛽1 vs 𝛽3 compares the relative slopes (for log likes) before and after non-promotion.
Does this make sense?
The thing, is I thought that a Poisson process is one where the mean is the same at each time period. But I definitely know the mean number of likes per hour differs by time period
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