Interview experience

[supanshahParticipant]

sushantgupta wrote:

Because the prob. of A dying does not depends on the death of B and vice- versa. Therefore intersection of the two prob. will be 0.

On the other hand in option 2 , we will add the individual prob. of A dying and B dying .

Thus in option 1 , I think the prob. will be 0 and in option 2 , we might get some prob. which will be greater than 0.

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All correct, except the probability of option 1 will “almost be zero” as both the probabilities would be multiplied. P(A&(A)*P( for independent events. This would definitely be close to zero, but asserting it is zero is false.

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[arya3340Participant]

I also think the answer will be option 2

sushantgupta wrote:

preetiadlakha wrote:

Answer of question 8 is option 1???

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I think it’s option 2

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[imported_yashParticipant]

sushantgupta wrote:

In Q7 I think something is wrong .

EMI of 5000 paid during the year seems to be wrong in statement.

Isn’t it ?

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No the question is tricky one because interest of loan is more than it’s EMI so he was not able to pay loan ever.

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[imported_yashParticipant]

sushantgupta wrote:

For Q6. I think the answer will be by finding the NPV(Net present value) of all the 3 cash flows and the cash flow having high NPV will be the most profitable . Do let me correct if I m wrong .

Thanks

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I think it’s better to use Time weighted rate of return than NPV.

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[imported_yashParticipant]

sushantgupta wrote:

preetiadlakha wrote:

Answer of question 8 is option 1???

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I think it’s option 2

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Yes most probably Option 2 is correct because first is and so it is an intersection of two sets while second one is union of two sets.

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[imported_yashParticipant]

preetiadlakha wrote:

Please answer question 2.

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I’m not sure if I’m right or wrong but reasons can vary as per different candidates. Like

1) Demand for the company’s product is less.

2) Company is small so it’s difficult for it to achieve economies of scale and that’s why their product is expensive as compared to their rival.

3) Managerial problems in company.

PS: please correct me if I’m wrong or there is any additional points.

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[imported_yashParticipant]

fenamsogani wrote:

Answer of question no 2

First major thing which cause loss is underwriting. Underwriting play critical role for insurance company for making profit. example of poor underwriting is adverse selection.

second thing is Asset liability mismanagement.

without market research enter into new product segment. so in case of failure it impact their solvency.

variable (increasingly) indirect cost.  

Do we have to answer the question be taking insurance companies in mind?

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