Archive for December 2016

Accuracy over Precision in Forecasting

Here’s a targeted interview question to test a job candidate’s financial modeling skills: “Can you build a model even when you don’t have all the relevant data?” The answer should be Yes. You don’t need all the relevant data, as long as you have identified what type of information you need, and the minimum information…

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Seperation of Concerns in a Financial Model

Here’s a targeted interview question to test a job candidate’s financial modeling skills: “Should you place inputs, calculations and outputs CLOSE TOGETHER in your model?” The answer should be NO. Your model should clearly distinguish between inputs, calculations and outputs. “Separation of concerns (SoC) is a design principle for separating a computer program into distinct…

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How to Hire a Financial Modeler for Your Business

If you’re running a business, you’ve probably made decisions on-the-fly and have done quick calculations in your head. But when you need to make decisions that require you to consider a multitude of factors, and the factors influence each other, it might be too complex for you to model the consequences of potential decisions in…

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