Capital One Assessment Test Applied Techniques 3 — Questions and Answers
Question 1: A customer's credit limit is $8,000 and their current balance is $2,960. What is their current utilization ratio?
- 32%
- 35%
- 37% (Correct answer)
- 40%
Correct answer: 37%
2,960 / 8,000 = 0.37, or 37%.
Question 2: A line graph shows new account approvals over 6 months: 1,200; 1,350; 1,100; 1,450; 1,300; 1,500. What is the trend?
- Consistently declining
- Consistently increasing
- Volatile with an overall upward trend (Correct answer)
- Flat with no discernible pattern
Correct answer: Volatile with an overall upward trend
The numbers fluctuate but move from 1,200 to 1,500, indicating a volatile yet upward overall trend.
Question 3: A risk model assigns scores from 1–100. Accounts scoring below 40 are flagged for review. If 8% of 25,000 accounts score below 40, how many require review?
- 1,800
- 2,000 (Correct answer)
- 2,200
- 2,500
Correct answer: 2,000
25,000 × 0.08 = 2,000 accounts.
Question 4: Two analysts interpret the same report. Analyst A concludes revenue grew 12% YoY; Analyst B concludes it declined 3%. The most likely cause is:
- One analyst used nominal and the other used inflation-adjusted figures
- One analyst made a math error
- They analyzed different time periods
- Both A and C are plausible causes (Correct answer)
Correct answer: Both A and C are plausible causes
Both differing base periods and nominal vs. real adjustments can produce such divergent conclusions.
Question 5: A collections team contacts 500 delinquent customers. 60% make a payment after first contact, and 30% of the remaining pay after a second contact. How many total customers made a payment?
- 240
- 270
- 360 (Correct answer)
- 390
Correct answer: 360
First contact: 500×0.60=300; Remaining 200×0.30=60; Total=360.
Question 6: A dashboard metric shows 'Average Days to Resolution' increased from 4.2 to 6.8 days. The percentage increase is closest to:
- 38%
- 48%
- 62% (Correct answer)
- 68%
Correct answer: 62%
(6.8−4.2)/4.2 = 2.6/4.2 ≈ 61.9%, closest to 62%.
Question 7: When building a decision tree to predict loan default, which technique best prevents overfitting?
- Increasing tree depth
- Adding more features
- Pruning the tree or setting a max depth (Correct answer)
- Using only training data for evaluation
Correct answer: Pruning the tree or setting a max depth
Pruning and setting maximum depth limit the model's complexity, reducing overfitting to training data.
Capital One Assessment Test Applied Techniques 3
A customer's credit limit is $8,000 and their current balance is $2,960.
What is their current utilization ratio?