Senior operations 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.
Aspirant, why did you take the revenue as 1% of the average balance? I think the average balance is the revenue. Whereas the response rate is 1%. Assuming 100 people are sent the mail: Revenue : (Response rate * 1000) = 1 * 1000 = 1000 Cost : (100 * Mailing cost) + (Response rate * claim rate * 1000) = (100 * 0.5) + (1*(5/100)*1000) = 50 + 50 = 100 Profit = Revenue - Cost = 1000 - 100 = 900 (This is for 100 mails sent) So the profit per mail sent = 900/100 = $9 Now, assuming the response rate is x% (instead of 1% as given) Revenue = 1000x Cost = (100*0.5) + (x*(5/100)*1000) = 50 + 50x Profit = 1000x - (50+50x) = 950x - 50 Profit per person = (950x - 50)/100 = 9.5x - 0.5 To make it more profitable, try to increase response rate x. Now if response rate is doubled and claims doubled, Profit = (Revenue) - (Cost) =(2000) - (50 + 100) = 1850 So profit per person = 1850/100 = $18.5 Now to make a chart of profit curve, i.e profit vs response rate, we use Profit per person = 9.5x - 0.5 plot : y= 9.5x - 0.5 Meaning : To break even, we need 9.5x - 0.5 = 0 i.e x = 0.05 (approximately) So we need a response rate of atleast 0.05% to be profitable (or 1 in 2000 people to respond)
Looks like I left out the price of the insurance: customers would pay 1% of monthly balance for insurance.
@Aspirant 2: You are using response rate as a number and at the same time using claim rate correctly as 5/100. use Response rate as 1/100 wherever applicable. Revenue should be $10 Cost = 50.50 Profit(Loss) = 10-50.50 Profit (Loss) per mail sent = (10-50.50)/100
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).
Behavioral (3 q's per 45 minute interview): A time you called on an "expert" to complete a task or problem. A time you faced an obstacle to a project being on-time. A time you needed to learn something new for a project. A time when you persuaded others to see and accept your view. A time when you needed to organize and manage a new assignment while continuing a current assignment. A time when you significantly and quickly adapted plans to the changing goals of a project or team.
See Interview Questions for Similar Jobs
- Operations Analyst
- Business Analyst
- Financial Analyst
- Senior Analyst
- Senior Business Analyst
- Data Analyst
- Senior Financial Analyst
- Operations Manager
- Vice President
- Investment Banking Analyst
- Software Engineer
- Assistant Vice President
- Project Manager
- Senior Consultant
- Senior Data Analyst