Capital One Assessment Test Applied Techniques 5

Question 1

A dataset shows that income and credit score have a correlation of 0.55. What is the most accurate interpretation?

Accepted Answer

There is a moderate positive relationship between income and credit score

Answer

Correlation of 0.55 indicates a moderate positive association, not causation or a perfect relationship.

Question 2

An analyst needs to identify customers most likely to respond to a balance transfer offer. Which technique is most appropriate?

Accepted Answer

A regression model predicting response probability

Answer

Logistic regression or similar predictive models estimate the probability of a binary outcome like responding to an offer.

Question 3

A table shows Q1 revenue by product: Checking=$1.4M, Savings=$0.9M, Credit Card=$3.2M, Loans=$2.1M. Credit cards represent approximately what percentage of total revenue?

Accepted Answer

42.1%

Answer

Total = 1.4+0.9+3.2+2.1 = 7.6M; 3.2/7.6 ≈ 42.1%.

Question 4

A risk team uses a scorecard where each attribute contributes points. A customer earns: payment history=35, debt ratio=20, account age=15, credit mix=10. Their total score is 80 out of 100. They are denied if score < 70. What is the outcome?

Accepted Answer

Approved — score exceeds the threshold

Answer

35+20+15+10=80, which exceeds the denial threshold of 70, so the customer is approved.

Question 5

An analyst discovers that a model trained on 2019–2021 data is underperforming in 2024. The most likely explanation is:

Accepted Answer

Concept drift — the relationship between features and outcomes has shifted

Answer

Concept drift occurs when the statistical properties of the target variable change over time, making older models less accurate.

Capital One Assessment Test Practice Test

Capital One Assessment Test Practice Test

Capital One Assessment Test Applied Techniques 5