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PayPal 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 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.
02

Which Excel functions do business analysts use daily?

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VLOOKUP or XLOOKUP, INDEX-MATCH, SUMIFS, COUNTIFS, IF, text functions, PivotTables and charts.
03

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.
04

SQL: month-over-month revenue growth.

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WITH m AS (SELECT month, SUM(amount) AS rev FROM orders GROUP BY month) SELECT month, rev, ROUND(100.0 * (rev - LAG(rev) OVER (ORDER BY month)) / LAG(rev) OVER (ORDER BY month), 1) AS mom_pct FROM m;
05

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.
06

What does a Business Analyst do?

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A BA bridges business and technology: gathers requirements, analyses data and processes, documents BRD/FRD and makes sure the final solution actually solves the business problem.
07

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.
08

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.
09

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.
10

How do you analyse variance between budget and actual?

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Variance = Actual - Budget, shown as amount and percentage, with conditional formatting to flag large gaps and comments on the drivers.
11

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.
12

What is scope creep and how do you control it?

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Uncontrolled growth of requirements. Control it with a clear scope statement, change control process, impact analysis and sponsor approval for additions.
13

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.
14

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.
15

How do you estimate the annual revenue of a coffee shop chain?

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Number of outlets x daily customers x average bill x operating days, then validate using footfall, peak hours and similar chains.
16

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.
17

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.
18

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.
19

How would you price a new subscription product?

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Combine cost-plus, competitor benchmarks and willingness to pay from research, test tiers with experiments and check margin and churn impact.
20

What is Power Pivot?

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An Excel add-in for building data models with relationships and DAX measures over millions of rows, beyond normal worksheet limits.
21

SQL: total revenue per month.

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SELECT DATE_TRUNC('month', order_date) AS month, SUM(amount) AS revenue FROM orders GROUP BY 1 ORDER BY 1; -- MySQL: DATE_FORMAT(order_date, '%Y-%m')
22

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.
23

What is a Minimum Viable Product (MVP)?

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The smallest version of a product with enough features to deliver value and gather real user feedback before investing more.
24

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.
25

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.
26

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.
27

What is the role of a BA in Scrum?

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They help the Product Owner refine the backlog, write stories and acceptance criteria, clarify details with developers and support testing and demos.
28

What is a primary key?

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A column or set of columns that uniquely identifies each row in a table and cannot contain NULL.
29

How do you prioritise requirements?

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Use MoSCoW (Must, Should, Could, Won't), value versus effort scoring or the Kano model, agreed with stakeholders based on business value and risk.
30

Use case vs user story?

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A use case describes the full interaction between an actor and the system (main and alternate flows). A user story is a short statement of need from the user's point of view, refined with acceptance criteria.
31

How do you validate data before analysis?

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Check row counts against the source, nulls, duplicates on keys, value ranges, date coverage and that totals reconcile with finance reports.
32

Build a break-even analysis in Excel.

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Break-even units = Fixed costs ÷ (Price − Variable cost per unit). Add a data table to test different price and volume scenarios.
33

Which what-if analysis tools does Excel have?

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Goal Seek (find the input for a target output), Data Tables (see outputs for many inputs) and Scenario Manager (save best, base and worst cases).
34

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.
35

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.
36

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.
37

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.
38

What is gap analysis?

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Compare the current state (as-is) with the desired state (to-be), list the gaps in process, people or technology, and plan actions to close them.
39

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.
40

What is customer lifetime value?

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The total profit expected from a customer over the relationship, roughly average margin x purchase frequency x lifespan, compared with acquisition cost.
41

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.
42

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.
43

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.
44

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).
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

What is a traceability matrix?

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A table linking each requirement to design, test cases and delivery status, ensuring nothing is missed and helping assess change impact.
47

Guesstimate: how many pizzas are sold in Mumbai on a weekend?

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About 20 million people, roughly 10% order pizza on a weekend, about 1 pizza per 2 people in an order. This gives roughly 1 million pizzas, adjusted for outlets and delivery capacity.
48

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.
49

What is a user story and what makes it good?

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A short requirement written as 'As a user, I want X so that Y', backed by acceptance criteria. Good stories follow INVEST: independent, negotiable, valuable, estimable, small and testable.
50

How do you protect a worksheet or workbook?

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Review > Protect Sheet or Workbook with a password, lock cells, hide formulas and allow only selected cells to be edited.
51

What are aggregate functions?

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Functions that summarise rows into a value, such as COUNT, SUM, AVG, MIN and MAX.
52

BRD vs FRD?

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A BRD states what the business needs and why. An FRD details how the system should behave to meet those needs (functional specifications).
53

What is the use of the IFERROR function?

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It returns a custom value when a formula errors out, keeping reports clean, for example =IFERROR(VLOOKUP(...), "Not found").
54

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.
55

What is a data table in Excel?

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A what-if tool that recalculates a formula for different inputs, for example loan payments across different rates and tenures.
56

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.
57

What is a RACI matrix?

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A table assigning Responsible, Accountable, Consulted and Informed roles per task so ownership is clear.