Capital One Assessment Test Applied Techniques 4 — Questions and Answers
Question 1: A bank offers a savings account with 4.8% APY compounded monthly. What is the approximate monthly interest rate?
- 0.39%
- 0.40% (Correct answer)
- 0.48%
- 0.40%
Correct answer: 0.40%
4.8% / 12 months = 0.40% per month (approximate monthly rate).
Question 2: An analyst receives a dataset with 5% missing values in the 'income' field. What is the most appropriate first step?
- Delete all rows with missing income
- Replace missing values with the mean income
- Investigate whether the missing data is random or systematic (Correct answer)
- Assume income is zero for missing values
Correct answer: Investigate whether the missing data is random or systematic
Understanding why data is missing (MAR, MCAR, or MNAR) informs the correct imputation or exclusion strategy.
Question 3: A credit analyst compares two portfolios. Portfolio A has a Sharpe ratio of 1.4; Portfolio B has a Sharpe ratio of 0.9. What does this indicate?
- Portfolio A generates more absolute return
- Portfolio A has a better risk-adjusted return (Correct answer)
- Portfolio B has lower volatility
- Portfolio A has higher total risk
Correct answer: Portfolio A has a better risk-adjusted return
A higher Sharpe ratio means more return per unit of risk, so Portfolio A is more efficient on a risk-adjusted basis.
Question 4: A call center handles 1,200 calls per day with an average handle time (AHT) of 6 minutes. If AHT is reduced to 5 minutes, how many more calls can be handled with the same capacity?
- 200
- 240 (Correct answer)
- 280
- 300
Correct answer: 240
Original capacity = 1,200×6 = 7,200 min; new calls = 7,200/5 = 1,440; increase = 240.
Question 5: A confusion matrix shows: True Positive=180, False Positive=20, True Negative=750, False Negative=50. What is the model's precision?
- 78%
- 82%
- 90% (Correct answer)
- 94%
Correct answer: 90%
Precision = TP / (TP + FP) = 180 / (180+20) = 180/200 = 90%.
Question 6: A table shows customer segments by lifetime value (LTV): Platinum=$5,200, Gold=$2,800, Silver=$1,100, Bronze=$400. If the portfolio is 10% Platinum, 25% Gold, 40% Silver, 25% Bronze, what is the average LTV?
- $1,760 (Correct answer)
- $1,940
- $2,040
- $2,160
Correct answer: $1,760
(0.10×5200)+(0.25×2800)+(0.40×1100)+(0.25×400)=520+700+440+100=$1,760.
Question 7: A manager wants to evaluate whether a new underwriting policy reduced default rates. The most rigorous method is:
- Compare default rates before and after policy change
- Survey customers about their satisfaction
- Run an A/B test with a control group not subject to the new policy (Correct answer)
- Analyze default rates for the top 10% of customers only
Correct answer: Run an A/B test with a control group not subject to the new policy
A controlled experiment isolates the policy's effect from external factors that also changed over time.
Capital One Assessment Test Applied Techniques 4
A bank offers a savings account with 4.8% APY compounded monthly.
What is the approximate monthly interest rate?