If you’re getting ready for a quantitative job interview but don’t know what to expect, this chapter will tell you what kinds of questions you can expect. Building on this, the next chapter will give you introductions to Mathematical Finance, Econometrics, and Statistics. These will cover some basic topics that all people who want to become Quantitative Analysts should know.
There are a lot of questions in this chapter that have nothing to do with quantitative finance. However, they are designed to test your ability to think through quantitative problems. As you can see from these questions, being a good Quantitative Analyst isn’t just about knowing a lot of complicated formulas. Rather, you need to be able to think on your feet, and these questions test that ability.
It’s likely that most of the questions you’ll be asked in the interview will have something to do with math, statistics, econometrics, or programming. Â Think of interviewing as an opportunity to demonstrate how many skills you have accrued in these areas. If an interview question covers a topic you have never heard of before, don’t worry about it. The point is not to show that you know everything. It’s to show that you know a lot and can use what you know. Focus on your answers, but don’t forget to include relevant techniques you might use to solve a problem. Also, be ready to explain how you’d use these techniques.
Hereâs an example. Are you being asked to figure out how much a customized stock option is worth? If so, talk about how you would figure out its value and how you might use a Monte Carlo simulation to guess what prices will be in the future. (What kind of drift and volatility process will your simulation use?) Remember that you should be ready to explain any idea you bring up in a conversation in full. Do not use the terms “Markov process,” “risk-neutral measure,” or “Bayesian inference” unless you can clearly explain what they mean. In the event that you fail to answer a specific question correctly, you may be able to redeem yourself by discussing other ideas you are familiar with during the interview.
Also, don’t be afraid to ask questions! A well-thought-out question about how something is modeled, how portfolio risk is calculated, or how an asset is valued can show that you are the kind of employee who will be interested and willing to go the extra mile to find answers or make a process better.
Interviewing for quantitative roles like traders, quants, data scientists, analysts, and other finance positions often involves intense quantitative questioning Mastering these tricky problems requires practice and preparation This article provides tips and sample questions to help you ace the numbers game.
Why Quantitative Interviewing Matters
Quantitative interviews assess critical thinking, numerical ability, and grace under pressure – essential skills for success in data-driven jobs. Employers design these interviews to evaluate your:
- Analytical skills – Can you structure a problem, identify insights, and creatively solve complex puzzles?
- Math competency – Do you have a solid grasp of key concepts like statistics, probability, and calculus?
- Communication skills – Can you break down quantitative ideas verbally and visually for non-technical audiences?
- Culture fit – Does your poise, thinking style, and teamwork align with the role?
While challenging, quantitative interviews ultimately identify candidates with potential to thrive in metrics-focused environments. With practice, applicants from diverse backgrounds can master these interviews and launch rewarding quant careers.
Types of Questions to Expect
Quantitative interviews feature both hypothetical and technical questions testing your quantitative abilities. Common types include
- Brain teasers – Puzzles testing analytical skills without requiring advanced math. For example: “How many golf balls can fit in a school bus?”
- Estimation questions – Fermi problems requiring reasonable approximations. For instance: “How many gas stations are there in New York City?”
- Probability problems – Questions involving statistics, combinations and permutations, games of chance, etc.
- Market questions – Problems related to investing, trading, valuation, or risk management.
- Technical questions – Questions testing specific financial, programming, statistical, or mathematical knowledge.
- Case studies – Open-ended business scenarios analyzed under time pressure.
Interviewers often begin with brain teasers and estimation questions before ramping up difficulty with probability, market, and technical concepts. Expect multiple question types testing analytical skill from various angles.
Helpful Tips for Quantitative Interview Success
With practice and preparation, quantitative interview questions become far less intimidating Here are some tips for acing this challenging component
- Review key technical concepts – Brush up on statistics, calculus, programming, finance formulas, and other domains tested. Focus on quickly recalling key definitions and principles.
- Practice brain teasers and estimation questions – These can be mastered with training, so do sample questions daily to hone problem-solving speed and intuition.
- Clarify the problem – Restate the question in your own words and seek clarification if unsure. Take notes and visualize data.
- Think out loud – Verbalize your thought process while solving problems. This demonstrates analytical ability, even if you don’t get the exact right answer.
- Ask follow-ups – If stuck, ask probing questions about what additional data would help. This shows critical thinking.
- Back up solutions – Explain the reasoning behind your answers. Justifying methodology is as important as calculations.
- Stay cool under pressure – Take your time and don’t panic. Solve problems systematically rather than rushing.
- Prepare stories – Have clear examples ready demonstrating analytical skills, data experience, and quantitative impact.
With dedication and deliberate practice, you can develop the skills needed to thrive in any quantitative interview.
Sample Quantitative Interview Questions
Here is a selection of sample questions to expect:
Brain Teasers
- How many golf balls can you fit into a school bus?
- How many piano tuners are there in Chicago?
- How many gas stations are there in New York City?
- How many days of the year does the average person spend on their smartphone?
Probability
- You flip a fair coin 5 times. What is the probability of getting 4 or more heads?
- A bag contains 3 red balls and 2 green balls. If you draw 2 balls randomly without replacement, what is the probability both are red?
- You roll a 6-sided die 10 times. What’s the probability of rolling more than two 6’s?
Market/Finance
- How would you value a company about to launch an IPO?
- How does a decrease in interest rates impact bond prices and yields?
- Your portfolio loses 20% of its value in January but gains 10% in February. What is the year-to-date return?
Technical
- What is the difference between Type I and Type II errors in hypothesis testing?
- Explain what p-values and confidence intervals represent in statistics.
- How does a logistic regression model work? What are some key applications?
Case Studies
- Your client is considering acquiring a competitor trading at a 20% discount to its fair value. As an analyst, how would you evaluate this potential deal? What data would help inform the buy/no-buy decision?
- You are an analyst at an investment bank advising a home goods e-commerce startup. The founders are deciding whether to raise more venture funding or pursue an IPO in the next year. How would you evaluate this decision?
Preparation is the best remedy for quantitative interview anxiety. With diligent practice, these questions become surmountable stepping stones to rewarding data-driven careers. You’ve got this!
Basic Personality/Standard Interview Questions
In any interview, expect the hiring manager to request that you âwalkâ them through your resume. This question may come up because the interviewer didn’t have time to look over your resume before meeting you. Or, he or she might want to see what parts of your background you choose to talk about and how well you can communicate. You have the chance to show why your past work experience makes you a good fit for this job. Â Emphasize any classwork, projects, work or teaching experience that is relevant to the Quant world.
Keep in mind that when answering non-technical questions, it’s not just what you say that matters—how you say it is exactly as important. Are you sure of yourself? Can’t think of what to say? Be quick on your feet, but also think things through.
Some other questions in this area might include:
- Please tell me something about yourself that isn’t on your resume.
- What is the riskiest thing you’ve ever done?
- Are you more risk-averse or risk-seeking? Give me an example.
- What is your greatest weakness?
- What do you think about getting up early or staying up late?
- What are your interests outside the classroom/office?
- Why should we hire you?
- What is your favorite class that you took?
- Which person has had the most impact on your life? Name someone you’ve never met but who has had a big impact on you.
- Tell me about your worst mistake or a hard time in your life.
- Discuss a difficult ethical decision you recently faced.
- Whatâs the last book you read?
Quantitative Interview Questions
What is a quantitative analyst interview question?
This question is an opportunity to show your interviewer that you understand the responsibilities of a quantitative analyst. Use this question as an opportunity to highlight your understanding of what it means to be a quantitative analyst and how you would apply your skills in this role.
How do I prepare for a quantitative analyst interview?
A quantitative analyst applies mathematical and statistical principles to investment management, risk assessment and other financial areas. You can prepare for a quantitative analyst interview by learning the kinds of questions an interviewer may ask you.
What is a quantitative interview?
A quant interview, or quantitative interview, is one in which the interviewer asks questions to assess your quantitative analysis skills. An individual applying for a position as a quantitative analyst or another role that involves highly developed quantitative skills may encounter this type of interview during their job search.
What are some examples of quantitative interview questions?
Look for responses that connect their professional motivations to the organization’s growth, such as their enjoyment of mathematical problem-solving, appreciation for quantitative precision, and ability to thrive in collaborative environments. Learn a thing or two from the following examples of quant interview questions: 1. You have two ropes.
