interview questions shared by candidates
case study: credit card insurance profit per customer cost of mailing $0.5, response rate 1%, average balance per month $1000, insurance charges 1% of average balance monthly, customer claim rate 5% (once insured customer files a claim, the balance will be wiped and C1 lose $1000). Question: profit per customer, graph claim rate vs response rate, graph profit vs response rate and find the response rate for maximum profit (r=1%)
Anti-freeze: planning to buy a company with 12.5 in cash, 10% bonds for the remaining amount. Total worth of the company $137.5. assuming there is no discount rate. When will u break-even. And is it a good buy? Part(2) - Anti-freeze is currently priced at $8, with 60% market share; there are other products in the market(A) priced at $7 with 15% market share, (B) at $7 with 7% market share and (c) with $5 and 10% market share. Should we consider decreasing our price by $1 or NOT?
CASE: Recovering Written-off Past Due Balances 6 months past due, avg $2000 balance, 15% pay in full, profitable? If introduce settlement option for 60% of balance, 10% pay settlement but 5% of them dont pay in full, better choice? With new model, now 9% pay in full, but with settlement option now 10% take settlement but a third of original payers dont pay in full, better? etc. (poorly worded and confusing case. unhelpful vague interviewer, arggg, cost me the job).