Top 22 Microsoft Data Analyst Interview Questions + Guide in 2024

Microsoft has been in the news recently for its bold foray into AI for quite some time now, and that investment has even driven it to the #1 position in the world for company valuation in 2024, overtaking Apple.

Apart from artificial intelligence, they are expected to continue to make strides in their businesses in 2024, ranging from gaming to cloud computing. This will mean that they will need more people to help analyze datasets and identify trends to drive these businesses forward - which is where the Microsoft Data Analysts come in.

With great pay, good work-life balance, and great health benefits, Microsoft is a generous and flexible employer.

In this detailed guide, we’ll walk you through the Microsoft Data Analyst interview, with our selected questions, strategies to tackle them, and interview tips.

By the end of this article, you’ll have a good overview of Microsoft’s interview process.

This role will require expertise in SQL and BI tools. Additionally, apart from pulling and reporting data, they will want analysts who have a keen eye for anomalies to identify patterns, trends, and provide actionable insights. Cultural fit is very important, so make sure you practice behavioral questions too.

Please note that the questions and structure of the interview process will differ based on the team and function advertised in the job description. Always go through the job role carefully when preparing your interview plan.

Microsoft’s interview process is generally fast-paced and can conclude in only a couple of weeks.

Step 1: Preliminary Screening

After applying, a recruiter will call to get a sense of your work experience and your cultural fit. They may ask you why you want to join Microsoft, as well as a couple of CV-based questions, so prepare some canned responses based on your research and projects.

Step 2: Technical Assessment

Successful candidates then undergo one or two technical interviews, usually via video chat. This is often a live coding round on a shared whiteboard.

Step 3: Panel Interview

If it’s a good fit, you will be invited onsite to meet your team and have a panel interview. This round typically involves a mix of technical, behavioral, and case study questions.

Step 4: Final Interviews

The final stage usually involves meeting with senior-level executives or team leaders. This last round will assess your cultural fit and your motivation to join the firm.

The questions asked in Microsoft’s Data Analyst interview aim to assess the candidate’s understanding of Microsoft-specific scenarios, such as optimizing SQL queries for large datasets, designing effective Power BI dashboards, and applying probability and statistical techniques in practical situations. The interview also includes behavioral questions to understand the candidate’s experience with team-oriented work and their approach to new challenges, aligning with Microsoft’s collaborative and data-driven culture.

If you want to learn more, then read through the full list we’ve prepared for you below:

1. We want to select the five most expensive projects (by budget) to the employee count ratio. But there’s a bug: we’ve detected duplicate rows in the table. Write a query to account for the error and select the top five most expensive projects by budget-to-employee count ratio.

This question is relevant for a Microsoft interview, as their Data Analysts work with complex datasets from various sources. It assesses your ability to ensure data integrity, which is crucial for making decisions in product development, market analysis, or operational efficiency at Microsoft.

How to Answer 

Demonstrate your understanding of SQL commands to remove duplicates and calculate ratios.

Example

“I would first create a subquery to identify and remove duplicate rows. I’d employ the rank function over row_number before selecting the top five values, as we would want to see all the top budgets having the same value, and row_number would filter those out.”

2. You are about to get on a plane to Seattle and want to know if you should bring an umbrella. You call 3 of your friends (selected randomly) who live there and ask them one by one if it’s raining. Each friend has a 2⁄3 chance of telling you the truth and a 1⁄3 chance of messing with you and lying. All 3 friends tell you that it’s raining. What is the probability that it is indeed raining in Seattle?

This question tests your knowledge of Bayesian probability. Analysts at Microsoft often need to make data-driven predictions relying on interpreting incomplete data.

How to Answer 

Explain Bayes’ Theorem and outline how you would calculate the probability on that basis.

Example

“Solving with Bayes’ theorem, and assuming that there is a 50% chance of precipitation in Seattle, there’s an 89% chance (or P(Raining) = ⁸⁄₉) that it is actually raining.”

3. Let’s say that we’re building a model to predict real estate home prices in a particular city. We analyze the distribution of the home prices and see that the home values are skewed to the right. Do we need to do anything or take this into consideration?

This question assesses your basic statistical knowledge in the context of preprocessing data. Microsoft values analysts who can address data distribution issues to build reliable predictive models.

How to Answer

Explain the implications of a right-skewed distribution and how it might affect the model’s performance. Discuss the potential methods to transform or normalize the data to improve model accuracy.

Example

“In a right-skewed distribution, most home prices are on the lower end, with fewer homes having very high prices. This skewness can affect the performance of most predictive models, as they often assume normally distributed data. To address this, I would apply a logarithmic transformation to the home prices to normalize the distribution.”

4. We have a table representing a company payroll schema. Due to an ETL error, the employees table, instead of updating the salaries when doing compensation adjustments, did an insert instead. The head of HR still needs the salaries. Write a query to get the current salary for each employee.

Troubleshooting inconsistencies during ETL jobs may be part of your day-to-day as a Data Analyst at Microsoft.

How to Answer

Mention the use of SQL constructs like subqueries, window functions, or GROUP BY clauses. Your explanation should demonstrate your ability to write clean and efficient code.

Example

”To get the current salary for each employee from the payroll table, I would use ROW_NUMBER() over a partition of the employee ID, ordered by the salary entry date in descending order. This ordering ensures that the most recent entry has a row number of 1. I would then wrap this query in a subquery or a Common Table Expression (CTE) and filter the results to include only rows where the row number is 1. This method ensures that only the latest salary entry for each employee is retrieved, correcting the ETL error that caused multiple inserts.”

5. Approval rates have gone down for our products. While it was 85% last week, this week it stands at 82%, which is a statistically significant drop. Our first analysis shows that approval rates for all four products surveyed stayed flat or increased over time when looking at the individual products. What could be the cause of the decrease?

This question assesses your ability to interpret data beyond face value. As an analyst at Microsoft, you will need to delve deep to understand underlying trends and exhibit methodical problem-solving skills.

How to Answer

Talk about the concept of Simpson’s Paradox, where aggregated data can show different trends from individual trends. Suggest looking into the distribution of applications across different products and how changes in this distribution have impacted the overall approval rate.

Example

“This scenario is likely an example of Simpson’s Paradox, where individual groups show trends that differ from the aggregated data. A possible cause for the overall decrease in approval rate, despite individual products showing stable or increased rates, could be a change in the volume of applications for each product. For instance, if one product having a lower approval rate saw a significant increase in applications, it would bring down the overall approval rate, despite the rates for each product staying the same or increasing.”

6. Given an integer n, write a function to determine the number of paths from the top left corner of an n×n grid to the bottom right. You may only move right or down.

This question tests your algorithmic thinking, which is valuable in data analytics for scenario analysis and predictive modeling problems at Microsoft.

How to Answer

Explain the combinatorial nature of the problem. The number of paths can be calculated using the concept of permutations, as the task involves choosing when to move right and when to move down in a grid.

Example

“In an n×n grid, to move from the top left to the bottom right corner, you must move right ® n times and down (D) n times, in any order. The total number of paths is the number of ways to arrange these 2n moves (n R’s and n D’s). This can be calculated as the binomial coefficient, which is the number of ways to choose n positions for either R or D out of 2n total moves, or more simply, the formula for combinations: C(2n, n). The formula is C(2n, n) = (2n)! / (n! * n!).”

7. How would you explain the idea of a p-value to a non-statistician?

Some colleagues you will work with at Microsoft may not have a strong statistical background. Interviewers want to know if you can effectively communicate these ideas to them.

How to Answer

Explain the nature of statistical testing and the concepts of the null and test hypotheses using an example. Instead of simply defining the p-value, this approach allows you to put the concept in a context that is easy for a non-statistician to relate to or understand.

Example

“If we had a new algorithm and needed to test if it was better, we would work with two hypotheses, a null hypothesis, and a test hypothesis. The null hypothesis would state that the new algorithm does not perform better, while the test hypothesis would say it does perform better. In this case, the p-value would give us a measure of the likelihood that we’d get the same results if the new algorithm wasn’t better. This null hypothesis is rejected if the p-value is less than 0.05.”

8. Estimate the cost of storing Google Earth photos each year.

This question tests your ability to perform back-of-the-envelope calculations, since Data Analysts often need to make quick estimates about large datasets. At Microsoft, such problem-solving skills are important for planning projects.

How to Answer

Approach this question by breaking down the problem into smaller parts and making assumptions about unknown variables. Estimate the size of an average Google Earth photo, the number of photos, and the storage cost per gigabyte. Remember that the interviewer wants to test your thought process, so follow a structured approach.

Example

“Let’s assume the average size of a high-resolution Google Earth photo is about 2MB. Google Earth covers the entire Earth’s surface, about 510 million square kilometers. If we assume one photo per square kilometer, that’s 510 million photos. Annually, that would be 1.02 terabytes of data. Let’s assume that the cost of cloud storage is $0.02 per GB per month. So, for 1.02 TB, it would be approximately $20,400/month, or about $244,800/year. The actual cost could be higher due to factors like data redundancy, higher resolution in certain areas, and ongoing updates.”

9. Given two tables: accounts and downloads , find the average number of downloads for free vs paying accounts, broken down by day.

Your ability to perform SQL queries involving joins and aggregations will be a fundamental skill in Microsoft, for example, in situations where your team needs to make decisions about subscription-based services such as their cloud platform.

How to Answer

Describe a SQL query involving a join between the accounts and downloads tables. You would need to group the results by both account type and by day, then calculate the average number of downloads for each group.

Example

“To answer this, I’d write a SQL query that joins the accounts and downloads tables on the account ID. Then, I’d group the results by the account type and the date of download. Using the AVG function, I’d calculate the average number of downloads for each group. The query would involve a SELECT statement for the account type and date, a JOIN clause to combine the tables, a GROUP BY clause for account type and date, and the AVG function to find the average downloads.”

10. How would you design a Power BI dashboard to track the performance metrics of Microsoft 365 services across different regions?

This question assesses your data analysis skills in Power BI, which is a key tool in Microsoft’s ecosystem. It evaluates your ability to present complex data in an accessible way while understanding the nuances of Microsoft 365 services.

How to Answer

Discuss the KPIs that are relevant for tracking the performance of Microsoft 365 services and how you would choose them. Explain how you would structure the dashboard for clarity and ease of use, while demonstrating your knowledge of functions in Power BI. Particularly, talk about how would tailor your dashboard or build layers depending on the end user.

Example

“I would first identify KPIs such as user engagement, service uptime, incident reports, and regional usage statistics. The dashboard would have a clear layout, with an interactive map for regional data visualization. Each region would be clickable to display detailed metrics, like active users, most-used services, and any ongoing issues. Additionally, I would include filters to allow stakeholders to view data by period, service type, or other relevant dimensions. The dashboard would be designed to update in real time, and various tabs would be created keeping the end user in mind. For example, if a senior executive is using the report, I’d ensure that only the most relevant insights are displayed to them.”

11. Given a large dataset, how would you optimize a SQL query to improve performance?

This question tests your SQL optimization knowledge, which is essential for handling large datasets at Microsoft. This is a key aspect to ensure analysts retrieve data promptly for quick decision-making.

How to Answer

Discuss strategies for optimizing queries, such as indexing, query restructuring, using appropriate join types, and avoiding unnecessary columns in the SELECT statement. Emphasize the importance of understanding the data structure and the business use case to choose the best techniques.

Example

“I would start by analyzing the query execution plan in the context of the business use case to identify bottlenecks. If the query involves joins, I would ensure that the joins are efficient by reordering them based on the size of the datasets. I would also create indexes on columns used in WHERE clauses and JOIN conditions to speed up searches. Additionally, I’d avoid selecting unnecessary columns, especially in large tables, and use WHERE clauses to filter data as early as possible in the query. I would also consider whether using subqueries or temporary tables could make the query more efficient.”

12. Microsoft is testing two different algorithms for a new search feature in Outlook. In an initial test, Algorithm A has a 60% chance of returning relevant results, while Algorithm B has a 70% chance. If a user randomly selects one of the algorithms for their search query, with a 50% chance of choosing either, what is the probability that the user gets a relevant result?

Through this probability question, the interviewer wants to check your understanding of combined probabilities from independent events, a key skill in data analysis for product development and user experience optimization.

How to Answer

Explain that this is a problem of combined probabilities where two independent events lead to a desired outcome. Calculate the probability of getting a relevant result with each algorithm and then take the weighted average based on the likelihood of each algorithm being chosen.

Example

“The overall probability is the sum of the probabilities of selecting each algorithm and then getting a relevant result. For Algorithm A, this is 0.5 x 0.6 and for Algorithm B, it is 0.5 x 0.7.

So, the probability that the user gets a relevant result is (0.5 x 0.6) + (0.5 x 0.7) = 0.65 or 65%.”

13. Your team has implemented two different layouts for the Bing search engine homepage. Layout A, the current version, is getting a 45% user engagement rate. Layout B, a new design, shows a 50% engagement rate. In a recent user study, 10,000 users were randomly assigned, with 5,000 each experiencing Layouts A and B. Determine if the observed difference in engagement rates between the two layouts is statistically significant.

A/B testing is an essential skill for analysts at Microsoft, for various use cases, such as for implementing new product features.

How to Answer

Explain that the task involves comparing two proportions (engagement rates for the two layouts) to see if the difference observed is due to chance or is statistically significant. This would typically involve conducting a hypothesis test, such as a chi-square test or a two-proportion z-test, using the engagement rates and the number of users exposed to each layout.

Example

“Given that we are comparing proportions, a two-proportion z-test would be appropriate. Our null hypothesis is that there is no difference in engagement rates between the two layouts. The z-score will tell us how many standard deviations away from the mean the observed difference is. Then, we compare this z-score to a critical value from the z-table at a chosen significance level, typically 0.05 for a 95% confidence level. If the calculated z-score exceeds the critical value, we should reject the null hypothesis, concluding that the difference in engagement rates is statistically significant.

We should examine the underlying assumptions: we assume that the samples are representative and independent and that external factors like marketing campaigns or seasonal effects did not influence the engagement during the testing period.”

14. The Xbox team at Microsoft is analyzing user engagement data. They notice that on weekends, the average session length is longer than on weekdays. However, when they look at the data closely, they find that while this is true for North America and Europe, in Asia the trend is reversed – average session length is longer on weekdays. How would you explain this?

This type of case study question tests your critical thinking skills. Understanding user behavior is a key skill to succeed as a Microsoft Data Analyst.

How to Answer

Discuss how cultural factors can influence user behavior differently in different regions. Suggest potential hypotheses or additional data points that could be explored to understand the underlying reasons for these trends.

Example

“It would be useful to explore demographic differences, like the age distribution of Xbox users in these regions, or the availability of other leisure activities, to better understand these trends. Additionally, examining marketing strategies or regional promotions during the given period would provide further insights.”

15. Microsoft is considering expanding its server capacity for OneDrive due to significant usage spikes during certain hours. Before making this decision, how would you analyze the usage data to understand if these spikes are consistent patterns or one-time occurrences?

The interviewer wants to gauge your ability to analyze usage data to inform infrastructure decisions. Understanding server load implications and making data-driven recommendations are critical skills for an analyst working in a large tech company like Microsoft.

How to Answer

Explain the importance of analyzing historical data over a significant period to identify patterns. Discuss what kind of analysis you would employ in this scenario.

Example

“I would conduct a time series analysis of the usage data, looking at various time frames – hourly, daily, and weekly – over an extended period. This would help me understand if the spikes occur at regular intervals or are random occurrences. I would also examine external factors such as marketing campaigns, new feature releases, or global events.”

16. After introducing a new feature in Excel, the product team wants to understand its impact on user productivity. What metrics would you consider and how would you design an analysis to evaluate the success of the feature?

This question assesses your ability to translate product changes into measurable outcomes. This skill is valued in a Data Analyst at Microsoft to aid in product refinement.

How to Answer

Mention the importance of selecting relevant productivity metrics and designing an analysis that compares these metrics before and after the feature’s introduction. Discuss the use of A/B testing or longitudinal studies to measure the feature’s impact. Define how you would benchmark success and what time horizon you would consider.

Example

“I would consider metrics such as average task completion time, error rate in data processing tasks, and user engagement with the feature (mainly frequency and duration of use). A/B testing of the feature can help us analyze user engagement as well. Additionally, collecting qualitative feedback through user surveys and analyzing the responses using text mining techniques is crucial.”

17. Given data on the sales of different Microsoft Surface models over the last quarter, how would you analyze trends to advise the product team on potential areas for development or improvement in the next generation of devices?

A Data Analyst at Microsoft must understand market trends and customer preferences, and how these insights can inform product strategy. The question tests your problem-solving in the context of a typical Microsoft business case.

How to Answer

Discuss a comprehensive approach to analyze sales data, including trend analysis, customer segmentation, A/B testing, and correlation analysis.

Example

“I would first perform a trend analysis to identify patterns such as peak sales periods or models with consistently high or low sales. I would segment the data by key demographics, regions, and specific features of the Surface models to understand user preferences. Additionally, I’d correlate the sales trends with customer feedback to identify areas for improvement.”

18. Why do you want to work for Microsoft?

It’s important for Microsoft to hire individuals who are passionate about what the company stands for. Interviewers will want to know why you specifically chose to apply for the Data Analyst role at Microsoft, and whether you have done your research properly.

How to Answer

Your answer should cover why you chose the company and role and why you’re a good match for both. Try to frame your answer positively and honestly. Additionally, focus on the value you’ll bring to the organization.

Example

“I want to work for Microsoft because I am deeply inspired by its commitment to innovation and its role in shaping the future of technology, particularly in cloud computing and AI. The company’s culture of diversity and inclusion aligns with my values.

I bring a blend of technical proficiency and a passion for data-driven problem-solving. Additionally, my collaborative approach and experience in diverse teams will ensure that I’m a great fit.”

19. Tell me about a time you failed.

As a Data Analyst, you’ll make mistakes from time to time. In a collaborative culture like Microsoft’s, they’ll want to know if you’re able to be open about mistakes, and turning those “failures” into opportunities for continuous improvement and education.

How to Answer

Familiarize yourself with the STAR (Situation, Task, Action, Result) method to structure your response in a compelling and organized manner.

When answering this question, especially in the context of Microsoft’s open and collaborative culture, it’s important to be honest and reflective. Choose a real example of a professional error, describe what happened, and most importantly, what you learned and how it shaped your growth. Emphasize how you took responsibility and how this experience has changed your approach to challenges and teamwork.

Example

“In my previous role, I was leading a project where we were implementing a new data visualization tool. I was confident in the tool’s capabilities and pushed for its implementation without thoroughly testing it in our existing environment. Unfortunately, once deployed, we encountered several compatibility issues.

This experience taught me the importance of comprehensive testing and validation, especially when integrating new technology into existing systems. This experience has made me a more cautious and collaborative professional. It taught me the importance of balancing innovation with practical execution, and has improved my approach to teamwork and project management.”

20. Could you describe a project or initiative where you played a pivotal role in a team?

In Microsoft’s data-driven and collaborative environment, teamwork and leadership are essential. Collaborative projects involve large datasets, complex requirements, and diverse teams. This HR question tests your ability to thrive in such an environment.

How to Answer 

Once again, follow the STAR (Situation, Task, Action, Result) method to answer this behavioral question. Use examples from past collaborative projects and quantify the impact of the project.

Example

“In a previous project on optimizing predictive maintenance for a client, our team faced significant challenges, including data quality issues and a tight timeline. As the lead analyst, I led the data preprocessing efforts and collaborated closely with domain experts and SMEs to fine-tune the model. As a result of our efforts, we successfully reduced unplanned downtime by 25%, resulting in substantial cost savings for the client.”

21. The HR department in your organization wants to calculate employees’ earnings. Write a query to report the sum of regular salaries, overtime pay, and total compensations for each role.

This question assesses your SQL skills and ability to handle practical business problems. It demonstrates your data analysis and problem-solving proficiency.

How to Answer

While calculating the total payments, we’ll nest SUM with the CASE WHEN statement to apply conditional logic and compute compensation accordingly.

Example

“I would write a query that calculates total salaries, overtime payments, and total compensation for each job title. I will sum the regular salaries and multiply overtime hours by their rates to get the total overtime payments. Then, I will add these together to get the total compensation. The GROUP BY clause groups the results by job title, giving us a clear breakdown of earnings for each role.”

22. Given a sorted list, create a function convert_to_bst that converts the list into a binary tree. convert_to_bst returns a TreeNode holding the root of the binary tree.

This task evaluates the candidate’s ability to think critically about data organization, which is essential for analyzing and optimizing data queries. Additionally, it tests their coding proficiency and ability to implement recursive functions, which are crucial for handling complex data manipulation and transformation tasks.

How to Answer

In answering this question, you must ensure that the resulting tree will be balanced and valid. You can create a simple algorithm that produces a tree without tree-balancing properties and still ends up with a balanced tree. Because the list is sorted, you can always optimize the roots of each subtree.

Example

“By always selecting the middle element of the list as the root, I can guarantee that the resulting tree will be balanced, as the left and right subtrees will have approximately the same number of elements. The recursive approach of dividing the list into sublists and applying the same logic ensures that each subtree is optimally balanced. This method avoids the need for complex balancing algorithms like AVL or Red-Black trees while still achieving a balanced binary search tree (BST).”

Here are some tips to help you excel in your interview.

Study the Company and Role

Research recent news, updates, Microsoft values, and business challenges the company is facing. Understanding the company’s culture and strategic goals will allow you to not only present yourself better but also understand if they are a good fit for you.

Then, once you understand the company’s position, seek to understand how the specific team you are applying to is supporting the company’s goals.

You can also read Interview Query members’ experiences on our discussion board for insider tips and first-hand information.

Brush Up on Technical Skills

Gain proficiency in SQL, Python, and BI tools. Be proficient in statistics, product sense, Excel, and metric development as well. Practice SQL problems that include window functions, complex joins, subqueries, lead and lag functions, etc. Check out our free resources for Data Analysts, such as this collection of Excel interview questions, or this guide on data visualization questions.

A great way to boost your confidence is to work on projects that mimic real-world analytics challenges. Check our article on our handpicked data analytics projects.

Prepare Behavioral Interview Answers

Soft skills such as collaboration, effective communication, and flexibility are paramount to succeeding in any job, especially in a collaborative culture such as Microsoft’s.

To test your current preparedness for the interview process, try a mock interview to improve your communication skills.

Ask the Interviewer Relevant Questions

Have thoughtful questions ready for your interviewer. This demonstrates your interest in the role and the company and gives you valuable insights into what it’s like to work at Microsoft.

If you feel this isn’t enough, then read through our guide on how to prepare for an interview as a Data Analyst to get more information.

What is the average salary for a Data Analyst role at Microsoft?

The average base salary for a Data Analyst at Microsoft is $128,168, making the remuneration competitive for prospective applicants.

For more insights into the salary range of a Data Analysts at various companies, segmented by city, seniority, and company, check out our comprehensive Data Analyst Salary Guide.

Where can I read more discussion posts on the Microsoft Data Analyst role here in Interview Query?

Here is our discussion board where our members talk about their Microsoft interview experience. You can also use the search bar to look up analyst interview experiences to gain insights into comparable tech companies’ interview patterns.

Are there job postings for Microsoft Data Analyst roles on Interview Query?

We have jobs listed for Data Analyst roles in Microsoft, which you can apply for directly through our job portal. You can also have a look at similar roles that are relevant to your career goals and skill set.

In conclusion, succeeding in a Microsoft Data Analyst interview requires not only a strong foundation in technical skills and problem-solving but also the ability to work in a collaborative environment.

If you’re considering opportunities at other tech companies, check out our Company Interview Guides. We cover a range of companies, including Google, IBM, Apple, and more.

For other data-related roles at Microsoft, consider exploring our guides for Business Analyst, Engineer, Scientist, and Software Engineer positions in our main Microsoft interview guide.

You can also read through our other Data Analyst interview guides, such as our main guide, behavioral, SQL, Excel, and case studies, for more additional information.

Understanding Microsoft’s culture of innovation and collaboration, and preparing thoroughly with both technical and behavioral questions is the key to your success.

Check out more of Interview Query’s content, and we hope you’ll land your dream role at Microsoft very soon!