20+ Quantitative Researcher Interview Questions and Answers

CPI stands for Consumer Price Index, which measures the average change in prices of goods and services over time.

• CPI is not the same as Grade Point Average (GPA)

• CPI is a measure of inflation and is used to track changes in the cost of living

• CPI is calculated by comparing the prices of a basket of goods and services over time

• CPI is used by policymakers to make decisions about monetary policy and to adjust Social Security benefits

• GPA is a measure of academic performance and is ...read more

This question involves using a calculator's functions to convert numbers through mathematical operations.

• Use the exp function to convert 0 to 1: exp(0) = 1.

• Square the result of 1 to get 2: 1^2 = 1.

• Use the square root function to convert 2 to 3: sqrt(2) ≈ 1.414, which is not 3.

• To convert 3 to -3, use the inverse of the square function: -sqrt(3) ≈ -1.732.

Simulate a 10-sided die using a 6-sided die.

• Assign each number on the 6-sided die to two numbers on the 10-sided die.

• Roll the 6-sided die twice and combine the results to get a number between 1 and 36.

• If the result is between 1 and 30, divide it by 3 and take the ceiling to get a number between 1 and 10.

• If the result is 31, 32, 33, 34, 35, or 36, re-roll.

Pseudo code to find the k'th largest element in an array

• Sort the array in descending order

• Return the element at index k-1

Brands launch products in South India despite low experimentation due to large population, diverse market, potential for growth, and competition.

• Large population in South India provides a significant market size for brands to tap into.

• The diverse market in South India allows brands to cater to different consumer preferences and behaviors.

• Despite being less open to experimentation, there is still potential for growth in South India as consumer preferences evolve over time.

• Comp...read more

Loop in a linkedlist can be found using Floyd's cycle-finding algorithm.

• Use two pointers, one moving at a speed of 1 and the other at a speed of 2.

• If there is a loop, the two pointers will eventually meet at some point.

• If there is no loop, the faster pointer will reach the end of the list.

• Time complexity is O(n) and space complexity is O(1).

A function that has a correlation of 0 means there is no linear relationship between the variables.

• A sine function and a cosine function have a correlation of 0 because they are orthogonal to each other.

• Randomly generated data points often have a correlation of 0 since there is no pattern or relationship between them.

• A horizontal line has a correlation of 0 with any other function since it does not change with the other variable.

To make a fair game out of an unfair die showing heads with probability p, we can introduce a penalty for rolling heads.

• Introduce a penalty for rolling heads, such as losing a point or skipping a turn.

• Adjust the game rules to account for the unfair die, ensuring that the penalty balances out the advantage of rolling heads.

• Consider incorporating strategic elements or decision-making to mitigate the impact of the unfair die on the game's fairness.

Calculate the probability of achieving a running sum of 100 from coin tosses represented as 1s and 2s.

• Each Heads (1) and Tails (2) contributes to the running sum.

• The running sum can be expressed as S = x + 2y, where x is the number of Heads and y is the number of Tails.

• To find the probability of S = 100, we need to solve the equation x + 2y = 100.

• For example, if x = 0, then y = 50 (50 Tails). If x = 100, then y = 0 (100 Heads).

• The total number of combinations of x and y can b...read more

The winning strategy is to ensure that the sum of both players' choices is always a multiple of 11.

• Ensure that the sum of both players' choices is always a multiple of 11

• If one player chooses x, the other player should choose 11-x to maintain the multiple of 11 rule

• For example, if player 1 chooses 3, player 2 should choose 8 to make the sum 11

Replicating strategies requires understanding, data access, and adaptability to market conditions.

• Analyze the original strategies' performance metrics to understand their effectiveness.

• Gather historical data relevant to the strategies, such as price movements and volume.

• Implement the strategies using a robust backtesting framework to evaluate their potential.

• Continuously monitor and adjust the strategies based on changing market conditions.

PCA stands for Principal Component Analysis. It is a statistical technique used to reduce the dimensionality of data while preserving important information.

• PCA helps in identifying patterns in data by transforming it into a new coordinate system where the greatest variance lies on the first axis, the second greatest variance on the second axis, and so on.

• It is useful for reducing the number of variables in a dataset, making it easier to visualize and interpret.

• PCA is commonly...read more

Common trading strategies include arbitrage, momentum trading, mean reversion, and statistical arbitrage.

• Arbitrage: Exploiting price differences between markets, e.g., buying a stock on one exchange and selling it on another.

• Momentum Trading: Buying stocks that are trending up and selling those that are trending down, based on the belief that trends will continue.

• Mean Reversion: Assuming that asset prices will revert to their historical average, e.g., buying undervalued stock...read more

Yes, I am interested in pursuing further studies.

• I believe that continuous learning is essential in this field.

• I am interested in exploring advanced statistical models and techniques.

• I am considering pursuing a PhD in a related field in the future.

Alpha formation involves identifying and exploiting market inefficiencies to generate excess returns.

• Alpha can be derived from various sources, such as fundamental analysis, technical analysis, or quantitative models.

• Example: A quantitative model might identify stocks with low price-to-earnings ratios that are undervalued compared to their peers.

• Sentiment analysis can also be a source of alpha, where social media trends are analyzed to predict stock movements.

• Risk factors, su...read more

Graph of x+(1/x) is a hyperbola with two branches.

• The graph consists of two branches, one in the first quadrant and one in the third quadrant.

• As x approaches positive or negative infinity, the graph approaches the x-axis.

• The graph has a vertical asymptote at x=0.

• The minimum value of the function is 2 when x=1 or x=-1.

Multivariate statistics involves analyzing data with multiple variables to understand relationships and patterns.

• Multivariate statistics allows for the analysis of complex relationships between multiple variables simultaneously

• It can be used to identify patterns, trends, and correlations in data

• Common techniques include factor analysis, cluster analysis, and multivariate regression

• Example: Using multivariate statistics to analyze the relationship between customer demographics...read more

Find all unique pairs in an array that sum to a specific target value.

• Use a hash map to store numbers and their indices for quick lookup.

• Iterate through the array, for each number, check if (target - number) exists in the map.

• Ensure pairs are unique by using a set to store results.

• Example: For array [1, 2, 3, 4] and target 5, pairs are (1, 4) and (2, 3).

Monte Carlo simulation is a statistical technique used to model and analyze complex systems through random sampling.

• Used in finance to estimate the value of investments by simulating thousands of market scenarios.

• In project management, it helps assess risks by simulating project timelines and costs.

• In physics, it can model particle interactions by simulating random paths of particles.

• Example: Pricing options using the Black-Scholes model through random price paths.