What is p-value and how is it used? give an example of a team building experience you had? Capital one wants to get into the contact business. It is the mid 90's, how many people in the US wear contact lenses? I think you were supposed to estimate the US population to be 300-350 million and then maybe half those people wear glasses and then a smaller percentage of those people wear contacts. Capital one wants to begin issuing a credit card in conjunction with your college. What are some of the benefits for this partnerships Large potential customer pool, established brand and loyalty.. (etc) Tell me about a time you used logic to solve solve a problem Profit maximizing problem given three different credit card offers with different response rates, interest rates, default rates, product lifetimes, and average carrying balances. Describe a situation in which you were able to use persuation to successfully convince someone to see things your way? Ice cream is sold for $5.00/gallon, it costs $1.00/ gallon, it has a demand of 100 units/month and a elasticity of demand of - 4. Assuming the ice cream manufacturer discounts the price of ice cream 10%, what is the difference in profit (+ or -) over the period of one month. Profit goes up by $90 agreed with above. at $4.50, 140 units are sold for revenue of $630. Before: Revenue= 100 x $5 = $500 Cost= 100 x $1 = $100 Profit= 100 x $4 = $400 Elasticty of -4 means that with every change i n price, demand would have a negative impact of upto 4 times. So if price goes down 10%, demand will go up 40% After: Revenue= 140 x $ 4.5 = $630 Cost= 140 x $1 = $140 Profit= 140 x $3.5 = $490
Case example: Analyzing an affinity credit card (ex. special card only available to members of a specific group) InterviewQuestion–
Facts: 1) average card balance is $1000 2) each card has a rate of 15% 3) membership fee is $20 per card 4) loss rate is 3% 5) $25 operating cost per card 6) $10 affiliation fee per card (cost to the group for access to members) 7) 6.5% cost of funds Q1: How much profit is generated per card? A1: Total Revenue = ($1000 * 15%) 15%) + $20 = $170 Total Expense = (3% * 1000) + $25 + $10 + ($1000 * 6.5%) = $130 Total Profit = $40 Q2: The 3% loss rate can either mean either 3% of the outstanding balance defaults or 3% of the borrowers default on their entire balance. If the average balance is increased to $2000, what happens to the loss? A2: The loss doubles either way you calculate it. Q3: Is a borrower with a low balance more or less likely to default then a borrower with a high balance? A3: Less likely. Borrowers tend to charge up a balance before they default. Q4: Would the affilated group ever want to puchase the accounts from the financial institution? A4: The most likely scenario is that they want to purchase the accounts in order to turn around and sell
them to another financial institution. Q5: If the affilated group offered $20 per account to purchase from the financial institution, what would thier profit be? (assume that we are only talking about 1 year) A5: Current profit per account is $40 minus the cost of $20 per account to purchase and eliminate the affiliation fee of $10 per account. Profit after the purchase would be $30. Q6: What could the financial institution do to convince the affiliated group not to want to purchase? A6: Increase the affiliation fee Q7: What is the most the financial institution would be willing to increase the affiliation fee to? A7: Max profit is the current level of $40 and minimum is the profit if sold to the affiliation at $20. $40 $20 = $20. They could only increase the fee by $20 for new affiliation fee of $30. That is all I can recall from memory. There wasn't a lot more. more. My advice is don't over-think things. http://www.capitalone.com/careers/hiring/sample_step1.php? linkid=WWW_Z_Z_Z_CARHIBC_C1_01_T_CARHISA1 http://www.joinbain.com/apply-to-bain/interview-preparation/default.asp
Do you like to lead if nobody is actually leading the group? how do you deal with conflictions with your boss How do you improve a call center with two different types of customer service agents?
