Capital One Assessment Test Applied Techniques 4

Question 1

A bank offers a savings account with 4.8% APY compounded monthly. What is the approximate monthly interest rate?

Accepted Answer

0.40%

Answer

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?

Accepted Answer

Investigate whether the missing data is random or systematic

Answer

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?

Accepted Answer

Portfolio A has a better risk-adjusted return

Answer

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?

Accepted Answer

240

Answer

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?

Accepted Answer

90%

Answer

Precision = TP / (TP + FP) = 180 / (180+20) = 180/200 = 90%.

Capital One Assessment Test Practice Test

Capital One Assessment Test Practice Test

Capital One Assessment Test Applied Techniques 4