Prepare for and practice interview questions from Lockton Companies across topics like SQL, Statistics, Machine Learning and more.

Lockton Companies Interview Questions

more than 5,600 professionals at lockton provide 48,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. from its founding in 1966 in kansas city, missouri, lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held, independent insurance broker in the world and 10th largest overall.
for six consecutive years, business insurance has recognized lockton as a "best place to work in insurance."

more than 5,600 professionals at lockton provide 48,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. from its founding in 1966 in kansas city, missouri, lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held, independent insurance broker in the world and 10th largest overall.

 for six consecutive years, business insurance has recognized lockton as a "best place to work in insurance."

Overview

Lockton Companies Interview Guides

Machine Learning

In which case would you use a bagging algorithm versus a boosting algorithm

Bagging vs Boosting

Credit Card Fraud Model

Describe linear regression to various audiences with different levels of knowledge.

Explaining Linear Regression to Different Audiences

Write a function to calculate precision and recall metrics.

Precision and Recall

Let's say that you're training a classification model.   How would you combat overfitting when building tree-based models?

Overfit Avoidance

Write a query to select the top 3 departments with at least ten employees and rank them according to the percentage of their employees making over 100K in salary.

Employee Salaries

Select the 2nd highest salary in the engineering department

2nd Highest Salary

Write a query that returns all neighborhoods that have 0 users.

Empty Neighborhoods

Duplicate Rows

Write a query to create a pivot table that shows total sales for each branch by year

Branch Sales Pivot

Statistics

Explain what a p-value is to someone who is not technical

P-value to a Layman

What are the assumptions of linear regression?

Assumptions of Linear Regression

How do you detect and handle correlation between variables in linear regression, and what happens if you ignore it

Correlation in Regression

What is the difference between type I and type II errors?

Type I and II Errors

How would you tackle multicollinearity in multiple linear regression

Multicollinearity in Regression

Behavioral

Describing a data project and its challenges

Hurdles In Data Projects

Strategically resolving misaligned expectations with stakeholders for a successful project outcome

Stakeholder Communication

What do you tell an interviewer when they ask you what your strengths and weaknesses are?

Your Strengths and Weaknesses

Data Structures & Algorithms

Given an array and a target integer, write a function that returns the indices of two integers in the array that add up to the target integer.

Target Indices

Swap the values of `a` and `b` in the dictionary without declaring any other variable

Swap Variables

Challenge

We’re given two tables, a <code>users</code> table with demographic information and the neighborhood they live in and a <code>neighborhoods</code> table.

Write a query that returns all neighborhoods that have 0 users. 

Example:

Input:

<code>users</code> table

<table>
<thead>
<tr>
<th>Columns</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>name</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>neighborhood_id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>created_at</code></td>
<td>DATETIME</td>
</tr>
</tbody>
</table>
<code>neighborhoods</code> table

<table>
<thead>
<tr>
<th>Columns</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>name</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>city_id</code></td>
<td>INTEGER</td>
</tr>
</tbody>
</table>
Output:

<table>
<thead>
<tr>
<th>Columns</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>name</code></td>
<td>VARCHAR</td>
</tr>
</tbody>
</table>

Write a SQL query to select the 2nd highest salary in the engineering department.

Note: If more than one person shares the highest salary, the query should select the next highest salary.

Example:

Input:

<code>employees</code> table

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>first_name</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>last_name</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>salary</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>department_id</code></td>
<td>INTEGER</td>
</tr>
</tbody>
</table>
<code>departments</code> table

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>name</code></td>
<td>VARCHAR</td>
</tr>
</tbody>
</table>
Output:

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>salary</code></td>
<td>INTEGER</td>
</tr>
</tbody>
</table>

Given a <code>employees</code> and <code>departments</code> table, select the top 3 departments with at least ten employees and rank them according to the percentage of their employees making over 100K in salary.

Example:

Input:

<code>employees</code> table

<table>
<thead>
<tr>
<th>Columns</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>first_name</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>last_name</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>salary</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>department_id</code></td>
<td>INTEGER</td>
</tr>
</tbody>
</table>
<code>departments</code> table

<table>
<thead>
<tr>
<th>Columns</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>name</code></td>
<td>VARCHAR</td>
</tr>
</tbody>
</table>
Output:

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>percentage_over_100k</code></td>
<td>FLOAT</td>
</tr>

<tr>
<td><code>department_name</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>number_of_employees</code></td>
<td>INTEGER</td>
</tr>
</tbody>
</table>

How would you explain what a p-value is to someone who is not technical?

What does a p-value in a statistical test represent?

What does a p-value in a statistical test represent?

P-value to a Layman I

In a statistical test, how does a low p-value (less than 0.05) influence our decision about the null hypothesis?

In a statistical test, how does a low p-value (less than 0.05) influence our decision about the null hypothesis?

P-value to a Layman II

Tell me about a data project that didn’t go the way you expected. What did you set out to do, what surprised you, and how did you handle it?

Three zebras are chilling in the desert. Suddenly a lion attacks.
Each zebra is sitting on a corner of a triangle with sides of equal length.
Each zebra randomly picks a direction and only runs along the outline of the triangle to either edge of the triangle.

What is the probability that none of the zebras collide?

Three zebras are chilling in the desert. Suddenly a lion attacks.

Each zebra is sitting on a corner of a triangle with side of equal length. Each zebra randomly picks a direction and only runs along the outline of the triangle to either edge of the triangle.

What is the probability that none of the zebras collide?

Three zebras are chilling in the desert. Suddenly a lion attacks.

Each zebra is sitting on a corner of a triangle with side of equal length.  Each zebra randomly picks a direction and only runs along the outline of the triangle to either edge of the triangle.

What is the probability that none of the zebras collide?



Three Zebras

Brainteasers

Given a 2-D matrix P of predicted values and actual values, write a function precision_recall to calculate precision and recall metrics.

Return the ordered pair (precision, recall).

Example:

Input:

<pre tabindex="0" class="chroma"><code>
P = [[121, 9],
 [17, 144]]
</code></pre>

where P represents the following table

<table>
<thead>
<tr>
<th></th>
<th>Predicted =TRUE</th>
<th>Predicted =FALSE</th>
</tr>
</thead>

<tbody>
<tr>
<td>Actual =TRUE</td>
<td>121</td>
<td>9</td>
</tr>

<tr>
<td>Actual =FALSE</td>
<td>17</td>
<td>144</td>
</tr>
</tbody>
</table>
Output:

<pre tabindex="0" class="chroma"><code>def precision_recall(P) -&gt; (0.931, 0.877,)
</code></pre>

Let’s say we’re comparing two machine learning algorithms. In which case would you use a bagging algorithm versus a boosting algorithm? 

Give an example of the tradeoffs between the two.

In machine learning, when would you use a bagging algorithm over a boosting algorithm?

In machine learning, when would you use a bagging algorithm over a boosting algorithm?

Bagging vs. Boosting

Given an array and a target integer, write a function <code>sum_pair_indices</code> that returns the indices of two integers in the array that add up to the target integer. If not found, just return an empty list.

Note: Can you do it on \(O(n)\) time?

Note: Even though there could be many solutions, only one needs to be returned.

Example 1:

Input:

<pre tabindex="0" class="chroma"><code>array = [1 2 3 4] 
target = 5 
</code></pre>

Output:

<pre tabindex="0" class="chroma"><code>def sum_pair_indices(array, target) -&gt; [0 3] or [1 2]
</code></pre>

Example 2:

Input:

<pre tabindex="0" class="chroma"><code>array = [3]
target = 6 
</code></pre>

Output:

<pre tabindex="0" class="chroma"><code>Do NOT return [0 0] as you can&#39;t use an index twice.
</code></pre>

What are the assumptions of linear regression?

Which assumption of the residuals of the standard linear regression model can not be overcome by increasing the sample size?

Regression assumptions

Given a <code>users</code> table, write a query to return only its duplicate rows.

Example:

Input:

<code>users</code> table

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>name</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>created_at</code></td>
<td>DATETIME</td>
</tr>
</tbody>
</table>

Let’s say you work at Allstate. Allstate is running <code>N</code> online ads right now. The table <code>ads</code> contains all those ads, ranked by popularity via the <code>id</code> column (e.g., the entry with <code>id = 1</code> is the most popular, etc.).

Create a subquery or common table expression named <code>top_ads</code> containing the top 3 ads (by popularity) and return the number of rows that would result from the following operations

<ol>
<li><code>ads INNER JOIN top_ads</code></li>
<li><code>ads LEFT JOIN top_ads</code></li>
<li><code>ads RIGHT JOIN top_ads</code></li>
<li><code>ads CROSS JOIN top_ads</code></li>
</ol>

Note: Please make the <code>join_type</code> column in your output have the values <code>inner_join</code>, <code>left_join</code>, etc. for each of their respective join types

Note: Please return only one query with each number in a different row

Example:

Input:

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>id</code></td>
<td>INTEGER</td>
</tr>

<tr>
<td><code>name</code></td>
<td>VARCHAR</td>
</tr>
</tbody>
</table>
Output:

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td><code>join_type</code></td>
<td>VARCHAR</td>
</tr>

<tr>
<td><code>number_of_rows</code></td>
<td>INTEGER</td>
</tr>
</tbody>
</table>

Create top_ads with the top 3 ads and return the row counts for inner, left, right, and cross joins with ads

Size of Joins

Let’s say that you are leading the development of an internal chatbot for operations support at Thomson Reuters, an internal tooling in their news division for referencing articles.

How would you design a system given a choice between fine-tuning the LLM or using Retrieval-Augmented Generation (RAG)?

Fine-Tuning VS RAG

AI & Agentic Systems

In the context of hypothesis testing, what are type I errors (type one errors) and type II errors (type two errors)? What is the difference between the two?

Bonus: Describe the probability of making each type of error mathematically.

How would you handle the data preparation for building a machine learning model using imbalanced data?

Addressing imbalanced data in machine learning through carefully prepared techniques.

Data Preparation for Imbalanced Data

Let’s say that you’re training a classification model.

How would you combat overfitting when building tree-based models?

When an interviewer asks a question along the lines of:

<ul>
<li>What would your current manager say about you? What constructive criticisms might he give?</li>
<li>What are your three biggest strengths and weaknesses you have identified in yourself?</li>
</ul>

How would you respond?

When asked about your strengths in an interview, what is an effective way to respond?

When asked about your strengths in an interview, what is an effective way to respond?

Your Strengths and Weaknesses I

Which of the following is an acceptable strategy when discussing weaknesses in an interview?

Which of the following is an acceptable strategy when discussing weaknesses in an interview?

Your Strengths and Weaknesses II

You are given a dictionary with two keys <code>a</code> and <code>b</code> that hold integers as their values.

Without declaring any other variable, swap the value of <code>a</code> with the value of <code>b</code> and vice versa.

Note: Return the dictionary after editing it.

Example:

Input:

<pre tabindex="0" class="chroma"><code>numbers = {
 &#39;a&#39;:3,
 &#39;b&#39;:4
}
</code></pre>

Output:

<pre tabindex="0" class="chroma"><code>def swap_values(numbers) -&gt; {&#39;a&#39;:4,&#39;b&#39;:3}
</code></pre>

Imagine you work at a major credit card company and are given a dataset of 600,000 credit card transactions to build a fraud detection model.

How would you approach this task? Write your answer in the comments.

How would you tackle multicollinearity in multiple linear regression?

How would you explain the concept of linear regression to three different audiences: a child, a first-year college student, and a seasoned mathematician? Ensure your explanations are tailored to the understanding level of each audience.

Talk about a time when you had trouble communicating with stakeholders. How were you able to overcome it?

Build a random forest model from scratch with the following conditions:

<ul>
<li>The model takes as input a dataframe <code>data</code> and an array <code>new_point</code> with length equal to the number of fields in the <code>data</code></li>
<li>All values of both <code>data</code> and <code>new_point</code> are <code>0</code> or <code>1</code>, i.e., all fields are dummy variables and there are only two classes</li>
<li>Rather than randomly deciding what subspace of the data each tree in the forest will use like usual, make your forest out of decision trees that go through every permutation of the value columns of the data frame and split the data according to the value seen in <code>new_point</code> for that column</li>
<li>Return the majority vote on the class of <code>new_point</code></li>
<li>You may use <code>pandas</code> and <code>NumPy</code> but NOT <code>scikit-learn</code></li>
</ul>

Bonus: The <code>permutations</code> in the <code>itertools</code> package can help you easily get all of any iterable object.

Example:

Input:

<pre tabindex="0" class="chroma"><code>new_point = [0,1,0,1]
print(data)
...
 Var1 Var2 Var3 Var4 Target
0 1.0 1.0 1.0 0.0 1
1 0.0 0.0 0.0 0.0 0
2 1.0 0.0 1.0 0.0 0
3 0.0 1.0 1.0 1.0 1
4 1.0 0.0 1.0 0.0 0
.. ... ... ... ... ...
95 0.0 1.0 0.0 1.0 0
96 1.0 1.0 0.0 0.0 0
97 0.0 0.0 1.0 1.0 0
98 1.0 0.0 0.0 0.0 0
99 0.0 1.0 0.0 0.0 0

[100 rows x 5 columns]
</code></pre>

Output:

<pre tabindex="0" class="chroma"><code>def random_forest(new_point, data) -&gt; 0
</code></pre>

Build a random forest model from scratch.

Random Forest from Scratch

Estimate the cost of storing Google Earth photos each year.

Estimate the cost of storing Google Earth photos each year.

Google Earth Storage

Estimation

Your company, a multinational retail corporation, has been storing sales data from various branches worldwide in separate tables according to the year the sales were made. The current data structure is proving inefficient for business analytics and the management has requested your expertise to streamline the data.

Write a query to create a pivot table that shows total sales for each branch by year.

Note: Assume that the sales are represented by the <code>total_sales</code> column and are in USD. Each branch is represented by its unique <code>branch_id</code>.

<h3>Example:</h3>

Input:

For simplicity, consider two years: 2021 and 2022.

<code>sales_2021</code> table

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td>id</td>
<td>INTEGER</td>
</tr>

<tr>
<td>branch_id</td>
<td>INTEGER</td>
</tr>

<tr>
<td>total_sales</td>
<td>INTEGER</td>
</tr>
</tbody>
</table>
<code>sales_2022</code> table

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td>id</td>
<td>INTEGER</td>
</tr>

<tr>
<td>branch_id</td>
<td>INTEGER</td>
</tr>

<tr>
<td>total_sales</td>
<td>INTEGER</td>
</tr>
</tbody>
</table>
Output:

<code>sales_pivot</code> table

<table>
<thead>
<tr>
<th>Column</th>
<th>Type</th>
</tr>
</thead>

<tbody>
<tr>
<td>branch_id</td>
<td>INTEGER</td>
</tr>

<tr>
<td>total_sales_2021</td>
<td>INTEGER</td>
</tr>

<tr>
<td>total_sales_2022</td>
<td>INTEGER</td>
</tr>
</tbody>
</table>
This output pivot table shows the total sales for each branch, broken down by year.

How do you detect and handle correlation between variables in linear regression? What will happen if you ignore the correlation in the regression model?

What is the difference between Logistic and Linear Regression?

When would use one instead of the other in practice?

What is the difference between Logistic and Linear Regression?

Calculate Moving Average	SQL	Easy
Predict Customer Churn	Machine Learning	Medium
A/B Test Significance	Statistics	Medium
Optimize Query Performance	SQL	Hard
Feature Importance Analysis	Machine Learning	Medium
Clean Missing Data	Python	Easy
Neural Network Architecture	Deep Learning	Hard
Calculate Cohort Retention	SQL	Medium
Bayesian Probability	Statistics	Easy
Recommend Similar Products	Machine Learning	Hard

Lockton Companies Interview Questions

Overview

Lockton Companies Interview Guides

Challenge

Lockton Companies Interview Questions

Discussion & Interview Experiences

Discussion & Interview Experiences