Senior analyst Interview Questions
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Senior Analyst interview questions shared by candidates
CASE: Cross-selling Credit Insurance to Cardholders direct mail: .50, 1% response rate, avg balance $1000, 5% claim insurance, etc. Profitable? How make more profitable? What if response rate doubled but claims doubled? Make chart of profit curve, what does it mean if..., etc.
12 Answers↳
Thanks for your response and guidance. I knew the revenue is monthly, but i thought claim rate is also monthly and hence calculated profit for each credit insurance sold per month. In light of your clarification Profit per card insurance per year = (10*12)-50-50 = 20$ per year If we chose to calculate per month, we will need to consider monthly claim rate as (5/12) and also amortize the marketing expense over next 12 month. Profit per card insurance per month = 10-(50/12)-(50/12)= (20/12)$ per month The profitability equation (per card per year) = 120x-10xy-50 For calculating any of the break even rates (x or y assuming 1 is known), 120x-10xy-50 = 0. For graph, P = 120x-10xy-50 Let me know if my analysis/answer is accurate and up to the mark. Thanks a lot for all your guidance. Less
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@ ghachla: The response rate is 1% that is 1 out of 100. I assumed 100 people are sent the mail. Hence the response rate is 1. As for the claim rate, the people who don't respond can't make claims. So out of the people who respond, the claim rate is 5% (i.e 1 person responds in 100 and out of that 1, 0.05 make the claim); Or to make it more clearer, if we assume 10000 people are sent the mail, 100 respond (because of the 1% response rate) and 5 out of the 100 make claims (because of the 5% claim rate). Less
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Looks like I left out the price of the insurance: customers would pay 1% of monthly balance for insurance. Less
The company is losing 1 million subscribers every month. What are the possible reasons for losing subscribers? Given the company is losing subscribers at this pace, how long can the company continue, until it starts making loss?
10 Answers↳
25 months
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12Bn Rev Per year 9BN cost per year Customer Loss per year = 1million *12 months = 12 million customers Revenue per customer per year = 36 + 7*12 = $120 Each year, company looses 1.44BN. = (12 million *120) To make a loss, company must loose 3BN 3BN/1.44BN = 2.083 years 2.083 years = 25 months. Less
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25 months doesn't sound right... Revenue: $12 billion Costs: $9 billion Profit: $3 billion Customer lost/month = 1 million Revenue lost/month = (36/12 + 7) = $10 * 1 million = $10 million Break even = $3 billion / $10 million = 300 months 300 months / 12 = 25 years The only way I can see 25 months is if we assumed Ad Revenue is Annual and CANNOT be broken down to month average/customer. In that case Annual Revenue/Customer = 36 + (7 *12) = $120/customer Total lost revenue/month = 120 * 1 million = 120 million Breakeven = 3 billion / 120 million = 25 months Less
They check for your attitude, your approach and your anxiety level! I solved both the case studies and I know I rocked the behavioral and Data challenge round, but still didn't ended up not being selected, why?
7 Answers↳
Can you please tell me more about the hacker rank round? what type of questions were there? Also about the sql ? Less
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Hi Y0u mentioned that you have cases compiled together. Can you please share it here? It would be really helpful. Thanks in advance Less
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I didn't practice the case solving approach enough. Though I had the math right, my approach was messy with too many papers and switching between many papers. Less
what product should we choose to carry if we only have one cube foot storage left in our warehouse?
6 Answers↳
Digital media.
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Gift cards
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Whatever carries the highest unit contribution margin. Need a decisioning metric which considers top line revenue along with variable costs. Less
Why leave current employer Tell me about yourself
5 Answers↳
Right not
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If you need work tomorrow frist you shoes
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That time I don’t have Money
This is the strange part about the whole process...I didn't see any of the questions as being "difficult" or "unexpected". I felt that I aced the interviews and then was shot down!
5 Answers↳
Ha ha! Your response to someone's offer to help you was arrogant and rude. No wonder you didn't get a job offer! Less
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If you applied for a Management position and if you are not a caucasian then you are out of luck and don't blame yourself for not joining this Company. Less
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Spoken by a total fool!
If it is 3:15. how many degrees are between the little and big hand?
5 Answers↳
7.5 degrees For every 360 degrees the little hand moves, the big hand moves 30 degrees; therefore, when the little hand moves 90 degrees (to the 15 minute mark), the big hand moves 7.5 degrees. Less
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At quarter past the hour, the minute-hand is exactly at 3:00 but the hour-hand has moved 1/4 of the way between 3:00 and 4:00. Therefore 1/4 times 1/12 = 1/48 of the clock. With the clock having 360 degrees, 360/48 = 7.5 degrees. Less
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7.5 degrees
Given the company forms a partnership with Hulu. The subscription fee is $2 per customer per month and ad revenue is $3 per customer per month, for additional customers. Hulu has 50 million subscribers and the adoption rate is 20%. How will this affect the company? How long can the company last without making loss?
5 Answers↳
I think there is enough information. We know from the previous question, their programming rights and contest cost 9Bn. Maybe they'd increase with the Hulu subscription. But assuming they stay the same, the business can last 30 months. Hulu has 50 M subscribers, adoption rate is 20% So, 10 million customers will sign up for this service Subscription fee is 2 per customer per month 2X12= 24 per year 24X10M= 240M in subscription fees per year Ad revenue is 3 per customer per month 3X12=36 per year 36X10M= 360M in ad revenue per year 240M+360M=600M in total revenue from Hulu partnership On a per month basis revenue from Hulu is 50M 750M in costs per month We know that once they reach 75M customers, they stop making a profit, and only break even. This is in month 25 Considering the monthly costs of 750M and the 50M in Hulu subscription revenue, we knows that once their revenue is 700M, they’ll no longer be making a profit. When their monthly revenue is 700M, they have 70M customers You can also set up an equation to determine the period when they’ll no longer net a profit X+50M=750M X=700M They’ll have 70M customers in month 30th So, the business can last until month 30th Less
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How do you calculate that they will have 70m customers in month 30
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Doesn't seem to be enough data here.... Time period? Costs?
You are the project lead on a plan to roll out a new product in China. What factors would you need to consider and what questions would you need to ask in evaluating the potential for success or failure?
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Communication with team members is one of the most important aspects to succeed. Making sure the execution of the plan is in writing and all team members are aware of their duties. Research the market and their needs and make sure these needs are met with your new product. Perform analysis and financial forecast with the costs and revenues to calculate profit margin and future growth. Less
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Remember your SWOT analysis from school? Here's where that comes in.
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I will touch the deepest emotions of the Chinese people so that they feel like the product, I realized art will understand. this is the most humane way to me. Less