Curated interview practice questions with answers. These are practice scenarios, not a verified list of past interview questions.
About KPMG hiring for Data Science roles
KPMG is one of the Big Four professional services networks, providing audit, tax and advisory services. KPMG in India and its global delivery centres support clients with technology consulting, data and analytics, risk advisory and cybersecurity. It hires in India for analysts and consultants in data analytics, governance and risk, IT audit, testing and ERP implementation.
For Data Science roles, this KPMG practice set focuses most on Python for Data Science (7), Deep Learning and NLP (6), Machine Learning (6), Feature Engineering (5). It has 7 easy, 25 medium, 8 hard questions, so you can start easy and work up to the harder ones.
Company type
Consulting
Headquarters
Amstelveen, Netherlands
Main India offices
Gurugram, Bengaluru, Mumbai, Hyderabad, Pune
KPMG Data Science interview process
Online assessment or screening test
Technical interview
Managerial or case round
Partner or HR round
Typical pattern based on public candidate experiences. Rounds vary by role, team and year.
Solved for KPMGStart practicing
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Recursive feature elimination trains a model, ranks features by importance or coefficient size, removes the weakest ones, and repeats until the desired number remains. RFECV picks the number of features using cross-validation. It considers features together rather than one at a time. The downsides are high compute cost on large data and unstable results when features are correlated, so check stability across folds.
Conditional probability is the chance of an event given that another event has happened, written P(A given B) = P(A and B) / P(B). Example: 10 percent of users buy, and 40 percent of users who add to cart buy. So P(buy given cart) is 0.4, much higher than the overall 0.1. It is the base of Bayes' theorem, Naive Bayes and many funnel analyses.
Power is the probability of detecting a real effect. Increase it with a larger sample, a bigger effect size, lower noise or a higher significance level.
The receptive field is the region of the input image that can influence one activation. Early layers see small patches like edges, and deeper layers see larger regions, enabling recognition of whole objects. It grows with kernel size, depth, stride and pooling, and dilated convolutions increase it without extra parameters. If the receptive field is smaller than the objects you care about, the network cannot capture their full context.
06
What is a baseline model and why should you build one first?
A baseline is the simplest reasonable prediction, such as predicting the most common class, last week's value or a basic logistic regression. It sets the minimum score any real model must beat. Without it, a 75 percent accuracy can look good when predicting the majority class already gives 80 percent. Baselines also catch pipeline bugs early and show whether extra complexity is worth it.
07
You want to test a new pricing algorithm in a two-sided marketplace where buyers and sellers interact. Why is user-level randomisation a problem and what would you do?
Treated and control buyers compete for the same sellers' supply, so a treatment that makes treated buyers buy more takes inventory from control buyers, exaggerating the measured lift. Use designs that limit interference: switchback tests that alternate the whole market between variants over time slots, or randomise by city or region. Analyse at the switch or cluster level with appropriate variance, and accept that these tests need longer to reach power.
08
Users say your internal chatbot gives outdated policy answers. What is the likely cause and fix?
The knowledge index probably still holds old document versions, or the model is answering from its training data instead of retrieved context. Fix the ingestion pipeline to re-index on document change and remove superseded versions. Store effective dates in metadata and filter or boost the latest. Instruct the model to answer only from provided context and show the source with its date, so users can verify it.
09
You assign values to a filtered DataFrame and Pandas shows a SettingWithCopyWarning. What is going on and how do you fix it?
The warning appears when you assign values to something that may be a copy of a slice instead of the original DataFrame, for example df[df.age > 30]['flag'] = 1. The original may not change. Fix it by using a single .loc call, like df.loc[df.age > 30, 'flag'] = 1, or by taking an explicit .copy() when you really want a separate DataFrame. Copy-on-write in newer Pandas versions makes this behaviour more predictable.
10
What does the axis parameter mean in NumPy and Pandas?
axis tells an operation which direction to work along. axis=0 works down the rows, so df.sum(axis=0) gives one total per column. axis=1 works across columns, so df.sum(axis=1) gives one total per row. In df.drop, axis=1 means drop columns and axis=0 means drop rows. A simple way to remember it: the axis you name is the one that gets collapsed or removed.
11
What do kernel size, stride and padding mean in a convolution layer?
The kernel is a small learnable filter, such as 3x3, that slides over the image and computes a weighted sum at each position. Stride is how many pixels it moves each step; stride 2 halves the output size. Padding adds border pixels so the output can keep the same size and edge pixels get processed. Output size equals (input minus kernel plus 2 times padding) divided by stride, plus one.
12
What are type hints in Python and why do data teams use them?
Type hints annotate expected types, for example def clean(df: pd.DataFrame, cols: list[str]) -> pd.DataFrame. Python does not enforce them at runtime, but tools like mypy and IDEs use them to catch mistakes early and give better autocomplete. In data teams they make shared pipeline code easier to read and review. They matter most in production code and libraries, less in quick exploratory notebooks.
13
What is the difference between a star schema and a snowflake schema?
A star schema has a central fact table, like sales with amounts and foreign keys, surrounded by denormalised dimension tables such as product, customer and date. A snowflake schema normalises dimensions further, for example product links to a separate category table. Star schemas need fewer joins and are faster and simpler for analysts. Snowflake schemas save storage and reduce duplication but make queries more complex.
Usually preprocessing differs between training and serving. Check that the same pipeline object was saved, not just the estimator, and that category order, missing value handling and scaling match. Compare library versions, feature types like strings versus integers, column order, and time zones in date features. Send the same few rows through both paths and compare features step by step to find the first mismatch.
16
An analyst tested 20 metrics in one experiment and found one significant. Should you trust it, and how do you correct for this?
Each test at 5 percent significance has a 5 percent false positive chance. Run 20 independent tests and you expect about one false positive even if nothing is real. Corrections include Bonferroni, which divides alpha by the number of tests and is strict, and Benjamini-Hochberg, which controls the false discovery rate and keeps more power. Also reduce the problem by choosing one primary metric before the experiment starts.
It combines gradient boosting with regularisation, handling of missing values, parallel tree construction and speed optimisations, and it performs strongly on tabular data.
18
What are lambda functions and where are they useful?
Find which columns caused the explosion, usually a few high-cardinality categoricals. Group rare categories into Other, or switch those columns to frequency, target or hashing encoding. Use sparse matrices so zeros take no memory. Tree libraries like LightGBM and CatBoost can handle categoricals natively without one-hot. Then remove near-constant columns and check that validation scores hold up with the smaller feature set.
20
Your LLM gives different summaries for the same document on different runs, but auditors need consistent output. What do you do?
Set temperature to zero or near zero and fix other sampling settings, and use a seed where the API supports it, though outputs may still vary slightly. Pin the exact model version. Use a structured output format with fixed fields, and reduce ambiguity in the prompt. Cache and store each generated output with its inputs and version, so the stored result, not a regeneration, is what auditors see.
21
What is normalisation, and why are analytics tables often denormalised?
Normalisation splits data into related tables to remove redundancy, so each fact is stored once, which suits transactional systems with many updates. Analytics workloads mostly read large volumes, and joins across many tables are slow and error-prone. So warehouses often use denormalised, wide tables or star schemas that repeat some attributes. The trade-off is more storage and the need to keep copies consistent through pipelines.
22
Your manager asks whether collecting more training data will improve the model. How do you answer using a learning curve?
A learning curve plots training and validation scores against the size of the training set. If both scores are low and close, the model has high bias and needs more features or a more flexible model. If training is high but validation is much lower and the gap narrows as data grows, the model has high variance and more data will help. It tells you whether collecting more data is worth the cost.
23
What is positional encoding in transformers and why is it needed?
Self-attention treats input tokens as a set, so without extra information it cannot tell word order: dog bites man and man bites dog look the same. Positional encoding adds position information to each token embedding. The original transformer used fixed sine and cosine patterns; BERT learned position embeddings; many modern LLMs use rotary embeddings, which encode relative positions and extend better to longer contexts.
24
Why is cross-entropy preferred over MSE for classification in neural networks?
Cross-entropy measures how far predicted probabilities are from the true class and strongly penalises confident wrong predictions. With a softmax or sigmoid output, it gives large, useful gradients when the model is wrong. MSE with sigmoid outputs gives very small gradients when predictions saturate, so learning slows down. Use binary cross-entropy for two classes, categorical cross-entropy for many classes, and MSE for regression targets.
BERT is an encoder-only transformer that reads text in both directions at once. It was pretrained with masked language modelling, where about 15 percent of tokens are hidden and the model predicts them, plus next sentence prediction in the original version. This gives contextual embeddings, so a word's vector depends on its sentence. You fine-tune BERT with a small task head for classification, NER or question answering.
Use filter methods (correlation, chi-square), wrapper methods (RFE), embedded methods (Lasso, tree importance) and domain knowledge, validating each choice with cross-validation.
27
What is the difference between hard voting and soft voting in ensembles?
In hard voting each model predicts a class and the majority wins. In soft voting each model gives class probabilities, they are averaged, and the class with the highest average wins. Soft voting usually works better because it uses each model's confidence, but it needs calibrated probabilities from all models. Hard voting is simpler and works even with models that only output labels.
28
How do you engineer features for a time series forecast without leaking future information?
Every feature must use only data available before the forecast time. Use lags and rolling windows that shift past the current point, and respect the forecast horizon: for a 7-day-ahead forecast, the most recent usable lag is 7 days. Compute scalers and encodings inside each training fold. Use known-future features only when truly known, like holidays or planned promotions. Validate with rolling-origin backtests that mimic production.
29
How would you design an ML platform for a team of 20 data scientists?
I would start from the team's pain points, then provide shared building blocks: a standard project template, managed notebooks with access to the warehouse, experiment tracking and a model registry, an orchestrator like Airflow for pipelines, a feature store if real-time use cases exist, a standard serving path using containers, and default monitoring. Prefer managed services over custom builds, and add self-serve documentation so teams do not depend on one platform engineer.
30
What do ACF and PACF plots tell you about a time series?
The ACF plot shows correlation between the series and its own lags, including indirect effects through intermediate lags. The PACF shows the correlation at each lag after removing the effect of shorter lags. For a stationary series, a PACF that cuts off after lag p suggests an AR(p) term, and an ACF that cuts off after lag q suggests an MA(q) term. Spikes at lag 7 or 12 reveal weekly or yearly seasonality.
31
You must run object detection on an edge camera at 30 frames per second. How do you meet that target?
Start with a lightweight one-stage detector at the smallest input size that keeps acceptable accuracy. Optimise it: export to ONNX, then use a hardware runtime like TensorRT or OpenVINO, with FP16 or INT8 quantisation calibrated on real images. Prune or distil from a larger model if needed. Profile the full pipeline, including decoding and preprocessing, and run detection every few frames with tracking in between if compute is tight.
32
How do you use groupby with multiple aggregations?
Modelling the count of events in a fixed interval when events occur independently at a constant average rate, such as calls per hour or defects per batch.
Mixed precision training uses 16-bit floats, float16 or bfloat16, for most operations while keeping a 32-bit master copy of the weights. It roughly halves memory use and speeds up training on modern GPUs with tensor cores. With float16, a loss scaler multiplies the loss to avoid gradients underflowing to zero. bfloat16 has a wider range and usually needs no scaling. Final accuracy is normally the same as full precision.
35
What is gradient descent and what does the learning rate do?
An optimisation method that updates weights in the opposite direction of the loss gradient. The learning rate sets the step size: too high and it diverges, too low and it is slow. Variants include SGD, mini-batch and Adam.
*args collects extra positional arguments into a tuple; **kwargs collects extra keyword arguments into a dict. They make function signatures flexible and are common in wrappers and decorators.
Putting features on comparable ranges using standardisation or min-max scaling. Distance-based and gradient-based models (KNN, SVM, regression, neural nets) need it; tree models do not.
38
What is effect size and why should you report it along with a p-value?
Effect size measures how large a difference is, for example the absolute lift in conversion or Cohen's d for means. A p-value only says whether the difference is likely due to chance. With millions of users, a 0.01 percent lift can be significant yet useless for the business. Reporting effect size with a confidence interval tells decision makers both whether the effect is real and whether it is worth acting on.
39
A deep network you built from scratch does not learn at all; the loss stays flat from the first epoch. Could weight initialisation be the reason?
If weights start too large, activations and gradients explode; if too small, they vanish, and training stalls. If all weights are equal, every neuron learns the same thing. Good schemes keep the variance of activations stable across layers: Xavier or Glorot initialisation for tanh and sigmoid, and He initialisation for ReLU. Frameworks use sensible defaults, but it matters when building custom layers or very deep networks.
40
What is DBSCAN and when is it better than K-means?
DBSCAN is a density-based clustering algorithm. It groups points that have at least min_samples neighbours within distance eps, and marks isolated points as noise. Unlike K-means, it does not need the number of clusters, finds clusters of any shape, and handles outliers. It struggles when clusters have very different densities and in high dimensions. It suits location data, like finding delivery hotspots from GPS points.
Tips to crack the KPMG Data Science interview
Learn basics of IT audit, internal controls and risk frameworks, since advisory roles often combine data with governance work.
Practise structured answers for guesstimates and business problems, explaining assumptions clearly step by step.
Prepare examples of working with stakeholders and meeting deadlines, which are common themes in Big Four interviews.
Keep a one-minute story ready for every project on your CV: problem, your part, tools, result.
Practise the hard questions on this page aloud; KPMG interviewers usually ask follow-ups on your first answer.
Frequently asked questions
How many rounds are there in the KPMG Data Science interview?
Candidates usually go through 4 stages: Online assessment or screening test; Technical interview; Managerial or case round; Partner or HR round. The exact rounds change with the role, team, location and your experience, so confirm the process with the recruiter.
Which topics should I prepare for the KPMG Data Science interview?
This practice set leans on Python for Data Science (7), Deep Learning and NLP (6), Machine Learning (6), Feature Engineering (5). Revise those first, then practise explaining one or two of your own projects end to end, because most KPMG interviewers ask you to walk through real work.
Are these the exact questions asked at KPMG?
No. These are curated practice questions that match the skills and difficulty usually tested in consulting interviews like KPMG's. They are not a leaked or verified list of past questions.
Where does KPMG hire Data Science professionals in India?
KPMG has large teams in Gurugram, Bengaluru, Mumbai, Hyderabad, Pune. Openings and locations change often, so check the KPMG careers page and filter by city and experience.