CarMax Business Analyst Interview Questions + Guide in 2024

CarMax, renowned for revolutionizing the auto industry, is the largest retailer of used cars in the United States. CarMax emphasizes honesty, transparency, and integrity in the car-buying experience. With more than 30,000 associates and over 240 locations nationwide, CarMax is hailed as one of the FORTUNE 100 Best Companies to Work For.

The Business Analyst position at CarMax involves leveraging analytical expertise to drive strategic decision-making and tangible results. You will work on complex business problems with CarMax’s proprietary data and rotate across departments, collaborating closely with leadership. Data analysis, financial modeling, problem-solving, and effective communication are required.

This guide from Interview Query will provide insights into the interview process, typical CarMax business analyst interview questions, and tips to ace your interview. Let’s get started!

The interview process usually depends on the role and seniority; however, you can expect the following on a CarMax business analyst interview:

Online Assessment

After applying online, selected applicants might be required to complete an online assessment focused on analytical word problems, math, and logic. The test is usually timed, and you can practice as many times as you like. Make sure to have a calculator and pen ready for this step.

Recruiter Screening Call

If your online assessment results are satisfactory, you will likely receive a call from a recruiter for a quick screening. This call will verify key details such as your work eligibility, educational background, and interest in the position. Behavioral questions, like “Walk me through your resume” or “Describe a time you had to solve an analytical problem,” might also be asked.

Phone Case Interview

Following the recruiter screening call, you may be invited to a one-hour phone interview focusing on a case study. The interviewer will provide information and data about a specific business case and walk you through the problem step-by-step. Your skills in problem-solving, basic arithmetic, and recommending logical solutions will be assessed here.

Onsite Interview Rounds

If you perform well in the phone case interview, you will be invited to the onsite interview rounds, often called SuperDay. This day usually consists of multiple interviews, including:

• Two one-hour case interviews to test your analytical and problem-solving skills.
• One 45-minute behavioral interview focusing on your past experiences, teamwork, and leadership qualities.
• Meet with the team you might be working with to understand the work environment and culture.

This process might take about 3 weeks to complete, given the various stages.

Typically, interviews at CarMax vary by role and team, but commonly, Business Analyst interviews follow a fairly standardized process across these question topics.

1. How would you optimize choosing the highest value artwork from a random sequence?

You are given 100 pieces of artwork in random order, each with a different dollar value. You can only choose one piece and not go back once you pass a piece. How would you optimize your strategy to select the highest-value artwork?

2. How would you interpret coefficients of logistic regression for categorical and boolean variables?

Explain how to interpret logistic regression coefficients when dealing with categorical and boolean variables.

3. What is the difference between covariance and correlation? Provide an example.

Describe the difference between covariance and correlation, and provide an example to illustrate the distinction.

4. What are time series models? Why do we need them when we have less complicated regression models?

Explain what time series models are and why they are necessary despite the availability of simpler regression models.

5. How would you determine if the difference between this month and the previous month in a time series dataset is significant?

Given a time series dataset grouped monthly for the past five years, describe how you would assess the significance of the difference between this month and the previous month.

6. How would you address a manager’s complaint about a packet filling machine not functioning correctly?

A manager reports that a machine intended to fill boxes with 25 packets is malfunctioning, resulting in incorrect packet counts. Describe how you would investigate and resolve this issue.

7. Create a function recurring_char to find the first recurring character in a string.

Given a string, write a function recurring_char to find its first recurring character. Return None if there is no recurring character. Treat upper and lower case letters as distinct characters.

8. Write a query to get the average order value by gender.

Given three tables representing customer transactions and customer attributes, write a query to get the average order value by gender. Round your answer to two decimal places.

9. Identify first-time and repeat purchases within product categories.

Analyze a user’s purchases to identify which purchases represent the first time they have bought a product from its category and which represent repeat purchases. Output a table that includes every purchase with a boolean column indicating if it’s a repeat purchase.

10. Parse the most frequent words used in poems.

Given a list of strings called sentences, return a dictionary of the frequency that words are used in the poem. Process all words as entirely lowercase and ignore punctuation marks.

11. Write a SQL query to select the 2nd highest salary in the engineering department.

Write a SQL query to select the 2nd highest salary in the engineering department. If more than one person shares the highest salary, select the next highest.

12. How does random forest generate the forest and why use it over logistic regression?

Explain the process of generating a forest in a random forest and discuss the advantages of using random forest over logistic regression.

13. How would you justify using a neural network model and explain its predictions to non-technical stakeholders?

Describe how you would justify the complexity of a neural network model for solving a business problem and how you would explain its predictions to non-technical stakeholders.

14. How would you interpret coefficients of logistic regression for categorical and boolean variables?

Explain the interpretation of logistic regression coefficients for categorical and boolean variables.

15. Which model would perform better for predicting Airbnb booking prices: linear regression or random forest regression?

Compare linear and random forest regression to determine which model would better predict booking prices on Airbnb and explain why.

16. What are the assumptions of linear regression?

List and explain the assumptions underlying linear regression.

To help you succeed in your CarMax business analyst interviews, consider these tips based on interview experiences:

1. Brush Up on Analytical Skills: CarMax values your ability to solve analytical and quantitative problems. Spend time practicing similar case studies and math problems.

2. Practice Behavioral Questions: Expect questions on your past experiences, especially involving teamwork, leadership, conflict resolution, and overcoming challenges.

3. Be Prepared for Rigorous Assessments: Some past interviewees have found the case studies and online assessments challenging. Approach them with a clear, logical thought process, and be ready to explain your reasoning in detail.

What is the average salary for a Business Analyst at CarMax?

According to Glassdoor, business analysts at CarMax earn between $81K to $118K per year, with an average of $98K per year.

What is the CarMax Analyst Rotation Program (ARP)?

The ARP is a 2-year program that offers three 8-month rotations with various teams across the CarMax analyst community. This program aims to provide various experiences, formal training, and career growth opportunities. Analysts work closely with leadership and get exposure to business areas like operations, product, marketing, and technology.

What qualities and skills does CarMax look for in a Business Analyst candidate?

CarMax seeks candidates with top-caliber analytical and problem-solving skills supported by a 4-year degree or equivalent experience. Practical experience through coursework, projects, research, or internships is highly valued. Strong communication, critical thinking skills, proactivity, and a commitment to continuous improvement are also key. Experience with SQL is helpful but not required.

If you want to deepen your understanding of what it takes to succeed in this role, dive into our comprehensive CarMax Interview Guide. You’ll discover a treasure trove of potential interview questions, insights into the interview stages, and strategies to ace them. Additionally, explore specialized guides for positions like software engineer and data analyst to get a broader understanding of CarMax’s interview process across various roles.

Good luck with your interview!