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Senior Operations Analyst Interview Questions

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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.

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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).

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What is Layer 8 of the OSI model

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Describe how you would measure customer service.

1 Answer

What is most important while comparing charts in the reports. (Unexpected) what is IRR, R square, joins, v lookup.

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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.

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Tell me 5 things you are. Tell me 5 things you are not.

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Why are you looking for work here?

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Tell me about a time you had to accomplish something and were limited by technology?

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Case based on Credit Cards. Mostly driven by probabilities and expected value.

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