Verabrede dich zum Casen über das Meeting-Board, nimm an Diskussionen in unserem Consulting Q&A teil und finde gleichgesinnte Interview-Partner:innen, um dich auszutauschen und gemeinsam zu üben!
Zurück zur Übersicht
Anonym A
am 30. Juni 2023
Global
Frage zu

II. Analysis - 2. What could be possible reasons? - a) Idea 1: Battery warranty

Hello everyone,

I did not get why we multiplied the failure rate by the replacement cost of battery, while in case of failure, 5000 EUR is the cost of replacement, not 1100 EUR.

4
1,2k
16
Schreibe die erste Antwort!
Bisher hat niemand auf diese Frage reagiert.
Beste Antwort
Andi
Coach
am 1. Juli 2023
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | Experienced Hires

Hi there,

the company wants to cover the cost of such warranty. To do so, they calculate the Expected Cost, which is a function of 

  • the cost per such incident (= $5,000 replacement cost); AND 
  • the probability of such event happening (22%) 

Think about it like an insurance - if only 22 out of 100 cars typically face such battery problem, then I will not incur replacement cost for all cars but only for the 22 where it actually happens.

Hope this helps.

Regards, Andi

am 30. Juni 2023
#1 Rated McKinsey Coach | Top MBB Coach | Verifiable success rates

Hi there!

To have a higher response rate here and also to get more out of the exercise, I'd recommend you give a first go to the answer yourself. Then we can chip in with feedback. 

Best,
Cristian

Pedro
Coach
am 30. Juni 2023
Bain | EY-Parthenon | Former Principal | 1.5h session | 30% discount 1st session

They are selling warranty, which is basically insurance. The cost of insurance is the cost of a negative event * probability of said event

So the replacement cost is 5000€. But they will only incur at that cost 22% of the time. 78% of the time their cost will be 0€.

This is why you multiply 22%*5000€. On average, across all of their vehicle base, they will have a cost of 22%*5000€ per insured vehicle.

Ian
Coach
am 1. Juli 2023
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

I'm super concerned by the fact that you've asked 3 questions on just 1 single case here.

(Please don't feel like you can't ask questions by the way!)

But it does sound like you could really use a reset in how you're approach math (learning how to figure it out yourself). 

Consider getting a coach. Check out rocketblocks (for math/charts/exhibits only). Review how you approach math (learn to take a step back, break it down, and figure it out yourself in order to maximize learning)

Ähnliche Fragen
Consulting
Frage zu
Difference between effective vs base price
am 29. Juni 2023
Global
5
2,6k
Beste Antwort von
#1 Rated McKinsey Coach | Top MBB Coach | Verifiable success rates
52
5 Antworten
2,6k Aufrufe
+2
Consulting
Frage zu
II. Analysis - 2. What could be possible reasons? - b) Idea 2: Cooperation with energy provider
am 30. Juni 2023
Global
3
1,0k
Beste Antwort von
#1 Rated McKinsey Coach | Top MBB Coach | Verifiable success rates
15
3 Antworten
1,0k Aufrufe
Consulting
Frage zu
Keep stable profit margin
am 29. Okt. 2023
Global
3
1,1k
Beste Antwort von
#1 Rated McKinsey Coach | Top MBB Coach | Verifiable success rates
20
3 Antworten
1,1k Aufrufe