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Morgan Stanley Business Analytics Interview Questions & Answers

Curated interview practice questions with answers. These are practice scenarios, not a verified list of past interview questions.

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01

How do you handle changing requirements?

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Log the change, assess impact on scope, cost and timeline, get approval through change control or backlog grooming, and update documents and stakeholders.
02

What is the 80/20 rule in business analysis?

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Pareto principle: about 80% of outcomes come from 20% of causes, such as most revenue from a few customers or most defects from a few issues.
03

How would you estimate the market size for an electric scooter in India?

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Top-down: two-wheeler market x EV share x addressable segment. Bottom-up: target households x adoption rate x price. Compare both for a sanity check.
04

What is a CTE?

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A named temporary result introduced with WITH that makes long queries readable and reusable in the same statement.
05

What is a product backlog vs a sprint backlog?

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The product backlog is the ordered list of all desired work; the sprint backlog is the subset the team commits to in the current sprint.
06

How do you build a PivotTable to analyse sales by region and product?

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Create a table, insert a PivotTable, drag region to rows, product to columns, sales to values, and add slicers for month or channel.
07

What is a BRD review and who signs it off?

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Stakeholders and the sponsor review the Business Requirements Document for completeness and accuracy, and the business owner gives formal sign-off before design begins.
08

A food delivery company's orders fell 15%. How do you investigate?

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Check data accuracy, then segment by city, restaurant, time and user type; look at supply, delivery time, pricing, competitors and seasonality before proposing fixes.
09

How would you decide whether to launch a new product?

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Assess market size and demand, customer need, competition, unit economics, capabilities, risks and strategic fit, then test with a pilot before scale-up.
10

How would you build a simple financial model in Excel?

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Separate inputs, calculations and outputs, link all formulas to input cells, add scenarios and checks, and avoid hard-coded numbers inside formulas.
11

Agile vs Waterfall?

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Waterfall runs fixed phases one after another with requirements frozen early. Agile delivers in short sprints with continuous feedback, so requirements can change. In Agile, BAs maintain the backlog and user stories.
12

How do you calculate the percentage contribution of each category?

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SUM(sales) per category divided by SUM(SUM(sales)) OVER () and multiplied by 100 gives each category's share of the total.
13

What are wireframes and why are they useful for a BA?

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Low-fidelity layouts of screens that help stakeholders visualise and agree on requirements before development starts.
14

What is a KPI tree?

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It breaks a top metric into drivers: Revenue = Users × Conversion × AOV; Users = New + Returning, and so on. It shows which lever to pull and where a drop came from.
15

Do a quick SWOT analysis for an ed-tech company.

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Strengths and Weaknesses are internal; Opportunities and Threats are external. Example: S = strong faculty, W = low brand awareness, O = AI upskilling demand, T = free online content.
16

How do you create a dashboard in Excel?

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Prepare clean data, build PivotTables and PivotCharts, add KPI cards and slicers, and arrange everything on one sheet with a clear layout.
17

How do you build a forecast in Excel?

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Use historical data with FORECAST.ETS or trend lines, state assumptions, compare against actuals and show best, base and worst scenarios.
18

How would you forecast next quarter's sales in Excel?

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Use FORECAST.ETS or a trendline on monthly history, check seasonality, compare with a simple moving average and present a range, not a single number.
19

How would you improve a company's low app conversion rate?

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Map the funnel, find the biggest drop-off, check usability and load time, run A/B tests on fixes and track conversion lift.
20

What is a KPI and give examples for an e-commerce business?

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A measurable value showing progress to a goal, such as conversion rate, average order value, cart abandonment rate and customer retention.
21

What is Kano model in prioritisation?

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A model classifying features as basic, performance or delight attributes based on how they affect customer satisfaction, helping decide what to build first.
22

What is a SWOT analysis?

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A framework listing internal Strengths and Weaknesses and external Opportunities and Threats to assess a project or business position.
23

What are fixed costs and variable costs?

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Fixed costs stay constant regardless of volume, such as rent; variable costs change with volume, such as raw materials.
24

Guesstimate: how many cars are sold in India every year?

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Structure it: households × car-owning share ÷ replacement cycle + first-time buyers + commercial fleet. State each assumption clearly and sanity-check the final number.
25

A client's profits are falling. How do you structure the problem?

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Split into revenue and cost, then revenue into price, volume and mix, and cost into fixed and variable; check internal factors and external market factors.
26

What is the difference between SQL and Excel for analysis?

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Excel suits small to medium data and quick ad-hoc work; SQL queries large databases directly and repeatably.
27

What is the difference between revenue and profit?

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Revenue is total money from sales; profit is what remains after subtracting all costs and expenses.
28

Stakeholders give conflicting requirements. What do you do?

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Clarify the goal behind each request, map them to business objectives, prioritise with MoSCoW, run a joint session, then document the decision and get sign-off.
29

How do you approach a guesstimate question?

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Clarify the scope, break the problem into logical parts, state assumptions with round numbers, compute step by step and sanity-check the answer.
30

Write a user story with acceptance criteria for password reset.

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As a customer, I want to reset my password by email so that I can get back into my account. Acceptance criteria: • Reset link expires in 15 minutes • Password rules are shown while typing • A success message appears after reset
31

How do you handle NULL values when calculating averages?

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AVG ignores NULLs; use COALESCE(col, 0) if NULLs should count as zero, depending on the business meaning.
32

How do you handle large datasets in Excel?

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Use tables, Power Query, remove volatile functions, filter before calculating and move to Power Pivot or a database when rows reach the millions.
33

How would you measure the success of a new feature?

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Define a goal metric, a baseline and guardrail metrics, run an experiment or before-after comparison and review adoption, retention and revenue impact.
34

KPI vs metric?

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Every KPI is a metric, but a KPI is tied directly to a strategic goal (e.g. monthly churn). A metric can be any measurement (e.g. page views).
35

What are functional and non-functional requirements?

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Functional requirements describe what the system does (login, reports); non-functional ones describe how well it does it (speed, security, availability, usability).
36

How do you compute CAGR in Excel?

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CAGR = (End value / Start value)^(1/years) - 1, entered as =(B2/A2)^(1/n)-1.
37

What is the difference between COUNT(*) and COUNT(column)?

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COUNT(*) counts all rows; COUNT(column) counts only rows where that column is not NULL.
38

Difference between INNER JOIN and LEFT JOIN?

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INNER returns only matching rows; LEFT returns all rows from the left table and NULLs where there is no match.
39

What is SQL and why do business analysts need it?

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A language for querying databases. BAs use it to pull data themselves, validate numbers, check reports and answer questions without waiting for engineers.
40

How do you use Excel's Scenario Manager?

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Define named scenarios such as best, base and worst with different input values and compare the outputs in a summary report.
41

Explain Porter's Five Forces.

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A model assessing industry attractiveness through supplier power, buyer power, threat of new entrants, threat of substitutes and rivalry among competitors.
42

How do you validate that a report's numbers are correct?

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Reconcile totals with source tables using SQL, check filters and joins for duplication, compare with prior periods and verify with business owners.
43

How do you evaluate a marketing campaign's ROI?

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ROI = (incremental profit - campaign cost) / campaign cost. Measure incremental sales using a control group or before-after comparison.
44

Should a food-delivery app launch in a new city?

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Check market size (population, online ordering share), competition, restaurant supply, unit economics per order, CAC and payback period. Propose a pilot with clear success metrics.
45

What is the difference between OLTP and OLAP systems?

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OLTP handles many small day-to-day transactions; OLAP supports analysis over large historical data with aggregates and reporting.
46

XLOOKUP vs VLOOKUP?

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XLOOKUP can look left or right, uses exact match by default, returns a custom value if nothing is found and doesn't break when columns move. VLOOKUP only looks right and needs a column number.
47

What are acceptance criteria?

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Clear, testable conditions a story must meet to be accepted, often written as Given-When-Then scenarios.
48

What is a feasibility study?

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An early assessment of whether a proposed solution is technically, economically, operationally and legally viable before committing budget.
49

What is a subquery and when would you use it?

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A query nested inside another, used for filtering or calculating values such as customers whose spend is above the average.
50

What are the 4 Ps of marketing?

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Product, Price, Place and Promotion, the levers a business uses to bring an offering to market.
51

A bank wants to reduce customer churn. What would you do?

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Define churn, analyse who leaves and why, segment customers, find drivers through data and surveys, design retention offers and measure uplift with a control group.
52

What is a use case diagram?

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A UML diagram showing actors and the actions (use cases) they perform with the system, giving a quick view of scope.
53

What is a stakeholder analysis?

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Identifying everyone affected by the project and mapping their influence and interest to decide how to communicate with and involve each group.
54

Guesstimate: how many cups of tea are sold in Delhi per day?

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Population about 20 million, adult tea drinkers about 50%, cups bought outside per person around 1 on average. This gives roughly 10 million cups, then adjust for offices and stalls.
55

What are aggregate functions?

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Functions that summarise rows into a value, such as COUNT, SUM, AVG, MIN and MAX.
56

What is root cause analysis and which techniques do you know?

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Finding the underlying reason for a problem using the 5 Whys, fishbone diagrams or Pareto analysis, then fixing the cause not the symptom.
57

What is sensitivity analysis?

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Testing how changes in key inputs such as price or volume affect the output, in Excel using data tables or scenario manager.
58

How do you calculate monthly revenue growth in SQL?

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Aggregate revenue per month and use LAG(revenue) OVER (ORDER BY month) to compute (revenue - previous) / previous.