Most job candidates are ready to enter the data to spreadsheets, and create models and reports following the per-defined processes and formulas. But forecasting is a different ball game. You have to set the formulas, choose the right model, set the variables, and you can easily make a mistake in your predictions….
Bad forecast should not let you down, however. We are learning all our lives, and the interviewers do not expect to meet impeccable job candidates in an interview. Speak freely about the bad forecast you made, and tell them how it helped you to become a better financial analyst.
How did the employer benefit from your good forecast?
When you talk about a great forecast you have made, you should mention the value it had for your employer (or for yourself, if it was a personal analysis). Did they make money? Did your analysis help them to make an important decision? If any of that happened, mention it in your answer….
And if you have no previous working experience, you can talk about forecasts you made at school. Let’s have a look at a good answer.
I used the Bayesian Method to forecast the prices on the local stock market. It was at school, for my seminary project. However, the real market prices differed to my estimations, and it ruined my seminary work. On the other hand, I learned that Bayesian Method is not sufficient and I started to use combination of methods, especially of Bayesian and Reference Class. It made my forecasts much more accurate. It was a good learning experience.
- What systems and programs would you use to prepare illustrated technical reports?
- Can you explain financial modeling?