IT professionals build, design, and maintain the systems that handle storing, sending, and retrieving information. Employers are looking for individuals who are able to systematically solve the tough and unusual problems that arise in the field. Expect to be asked many hypothetical questions that will assess your thought process when dealing with complex problems.
1 million card applications. $1 per application cost to do employment verification. 96% pass verification and get a card. 4% fail and do not get cards. Given average profits on cardholders in good standing, and average losses on accounts that default, find the % of denied cardholders that would have to default in order to justify the $1 per application verification cost .
Anymore info given? I think you'd either need to know the percentage of cardholders in good standing, or the percentage of cardholders in bad standing.
This appears to be a trick question that makes you think they want to know the break-even point. However: how can someone default on a credit card that they were "denied" and never issued?
Its hypothetical - IF they were given the card and IF they defaulted on it... how many of them would have to default in order for the losses from their accounts to justify the $1/application cost of rejecting them.