Headcount Analysis

(450 regular points + 150 extra points available)

QUESTIONS
Part 1. Historical Data Analysis.

1. Of the employees on staff at the end of 2020, what percentage were hired in 2020? – 25
Points

a. 59.7%
b. 60.3%
c. 61.8%
d. 62.3%
e. 62.9%
f. 63.4%

2. At which quarter-end did ABC first have more than 700 employees? – 25 Points

a. 2016-Q4
b. 2017-Q1
c. 2017-Q3
d. 2018-Q2
e. 2018-Q3
f. 2019-Q1

3. What was the last quarter-end at which ABC’s headcount was more than 10% higher than
the previous quarter-end? – 75 Points

a. 2015-Q3
b. 2016-Q1
c. 2016-Q3
d. 2017-Q1
e. 2017-Q3
f. 2017-Q1

4. There is one year between 2013 and 2019 in which more than half of the employees hired
that year were no longer on staff by the first quarter report the next year – which year was
it? – 75 Points

a. 2014
b. 2015
 c. 2016
d. 2017
e. 2018
f. 2019

Part 2. Modeling Future Hires.

5. Under scenario 1, of the 297 people hired on October 1, 2020, how many would be expected
to still be on headcount at the end of 2021? – 50 Points
a. 73.23
b. 85.41
c. 99.70
d. 101.68
e. 111.77
f. 127.82

6. Under scenario 2, without adjusting for a different departure rate for new hires, how many
hires will ABC need to make in the third quarter of 2021 to hit its headcount target? – 50
Points

a. 307.49
b. 314.34
c. 318.19
d. 329.98
e. 333.67
f. 341.92

7. Under scenario 3, and if 2021 hires leave at only 50% of the rate of earlier hires, in which
quarter will ABC need to hire the smallest number of people to meet its headcount target? –
50 Points

a. 2021-Q4
b. 2022-Q1
c. 2022-Q2
d. 2022-Q3
e. 2022-Q4
f. 2023-Q1

8. Compared to the base case (scenario 1, no reduction in the turnover rate for new hires),
which of the following gives the largest reduction in the total number of people ABC should
expect to hire over the course of 2021 and 2022? – 50 Points

a. Switching to scenario 2, no change to new hire turnover

b. Switching to scenario 3, no change to new hire turnover
c. Switching to scenario 4, no change to new hire turnover
 d. Staying in scenario 1, but with only 80% of the base turnover assumptions applied
to new hires

9. How many fewer people need to be hired in that scenario? – 50 Points

a. 289.90
b. 293.93
c. 297.12
d. 301.83
e. 304.09
f. 308.45

Bonus Question – extra 150 points in addition to the 500 points for the case.
10. Complete the table on the ‘bonus’ tab in the Financial Model file and enter the code it
generates (make sure to recalculate!). – 150 Points

a. 626
b. 656
c. 686
d. 717
e. 747
f. 777