Case Interview Hypothesis: How to Solve Cases 3x More Easily

Summary

In this video, the importance of using a hypothesis-driven approach in case interviews is highlighted. A hypothesis helps focus on relevant issues, prioritize time, and steer the direction of the case. The process involves making educated guesses, testing them, and refining the hypothesis as more data is gathered. The video explains when and how to state a hypothesis, its level of specificity at different stages, and provides real-case examples to demonstrate its application. By mastering this method, candidates can significantly improve their case interview performance in a short time.

Takeaways

• 😀 A hypothesis-driven approach is essential in case interviews, as it allows you to solve cases quickly and efficiently.
• 😀 Hypotheses help focus on relevant issues, prioritize time, and steer the case interview in the right direction.
• 😀 A hypothesis helps you develop your recommendation early and refine it throughout the interview.
• 😀 The hypothesis should be stated as early as possible, typically after presenting the case framework.
• 😀 If you don't have enough information, state that you cannot form a hypothesis and explain what information is needed.
• 😀 Hypotheses become more specific as you progress through the case, with broad hypotheses at the beginning and refined ones later.
• 😀 An incorrect hypothesis is a normal part of the process, as it helps narrow down potential answers.
• 😀 In a profitability case, hypotheses should evolve based on gathered data and facts, becoming increasingly focused.
• 😀 In a market entry case, hypotheses should also evolve based on new insights, such as market attractiveness, company capabilities, and acquisition possibilities.
• 😀 Throughout the case interview, hypotheses guide the candidate’s steps, making the analysis more directed and purposeful.
• 😀 Practicing a hypothesis-driven approach can drastically improve case interview performance by saving time and improving focus.

Q & A

What is a hypothesis-driven approach in case interviews?

A hypothesis-driven approach involves formulating educated guesses about the business problem at hand and then testing these guesses through analysis to either support or refute them.

Why is using a hypothesis important during case interviews?

Using a hypothesis helps you focus on relevant issues, prioritize your time, steer the case in a productive direction, and develop your recommendation throughout the case.

When should you state your hypothesis in a case interview?

You should state your hypothesis as early as possible, typically after presenting your case framework. If you lack sufficient data, express that to the interviewer and state what additional information you would need to form a reasonable hypothesis.

How specific should your hypothesis be during the course of a case interview?

At the beginning of the case, your hypothesis should be broad, and as you gather more information, it should become more specific, focusing on the data you uncover to narrow down the possible solutions.

What are the four main benefits of using a hypothesis-driven approach?

1. Focuses on relevant issues. 2. Helps prioritize time effectively. 3. Steers the direction of the case. 4. Helps develop your final recommendation.

How can a hypothesis help you prioritize your time during a case interview?

A hypothesis allows you to identify and focus on the most critical questions and analyses that will either support or refine your hypothesis, ensuring your time is spent on the most impactful areas.

What should you do if you don't have enough information to form a hypothesis?

If you lack sufficient data, clearly state this to the interviewer and outline what information is needed to develop a well-informed hypothesis. This demonstrates your strategic thinking.

Why is it okay for a hypothesis to be wrong during a case interview?

It is normal for a hypothesis to be incorrect at times because each iteration of a hypothesis brings you closer to the correct answer. Incorrect hypotheses help narrow the focus and refine the solution.

Can you give an example of a case where the hypothesis evolves as more information is gathered?

In a profitability case, you might start with the hypothesis that increased costs are the issue. After discovering that costs have remained flat, you revise your hypothesis to focus on decreased revenue, then refine it further to consider changes in product durability as you gather more data.

How does using a hypothesis-driven approach help in making a recommendation at the end of a case?

Throughout the case, the hypothesis serves as a work-in-progress version of your recommendation. As you refine the hypothesis with evidence, it ultimately becomes the recommendation at the end of the case.