Capital One Assessment Test Advanced Applications 4

Question 1

A Capital One product team is analyzing customer lifetime value (CLV). If average monthly revenue per customer is $45, monthly churn rate is 3%, and gross margin is 70%, what is the CLV?

Accepted Answer

$1,050

Answer

$900

Answer

$1,500

Answer

$315

Question 2

Which Python pandas method efficiently fills missing values in a time-series transaction dataset using the previous valid observation?

Accepted Answer

df.fillna(method='ffill')

Answer

df.fillna(df.mean())

Answer

df.dropna()

Answer

df.interpolate(method='linear')

Question 3

An analyst is evaluating two credit models. Model A has AUC-ROC of 0.82; Model B has AUC-ROC of 0.79 but captures 15% more high-risk customers. Which factor should drive the final model selection?

Accepted Answer

Business objective — if minimizing defaults is the priority, higher recall on high-risk customers may outweigh AUC

Answer

Always select the higher AUC model regardless of business context

Answer

Always select the model with higher recall regardless of AUC

Answer

Flip a coin since the difference is within statistical noise

Question 4

Capital One's data warehouse uses a star schema. In this context, what is the role of a fact table?

Accepted Answer

Stores quantitative business metrics (transactions, amounts, counts) with foreign keys to dimension tables

Answer

Stores descriptive attributes about business entities like customers and products

Answer

Serves as the primary key source for all other tables

Answer

Contains audit logs of ETL pipeline runs

Question 5

A logistic regression model for credit approval returns a probability of 0.73 for a customer. With a decision threshold of 0.60, what is the model's prediction?

Accepted Answer

Approve — 0.73 exceeds the 0.60 threshold

Answer

Deny — 0.73 is too close to the threshold to be reliable

Answer

Approve — only if probability exceeds 0.80

Answer

Deny — probability must equal 1.0 for approval

Question 6

Which SQL clause correctly calculates the percentage of total spend each category represents in a single query without a subquery?

Accepted Answer

SUM(amount) / SUM(amount) OVER () * 100 AS pct_of_total

Answer

SUM(amount) / COUNT(*) * 100 AS pct_of_total

Answer

SUM(amount) * 100 / MAX(SUM(amount)) AS pct_of_total

Answer

amount / SUM(amount) GROUP BY category * 100 AS pct_of_total

Question 7

In Capital One's risk management, a Monte Carlo simulation is used to model credit loss distributions. What is the primary advantage of this technique over a single-point estimate?

Accepted Answer

It quantifies the full range of possible outcomes and their probabilities, capturing tail risk

Answer

It guarantees the most accurate single prediction of future losses

Answer

It eliminates model uncertainty by running thousands of identical calculations

Answer

It reduces computation time compared to analytical models

Capital One Assessment Test Advanced Applications 4

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