[dlokshin]

A Finance sector perspective:

In reading through the threads, there's a common underlying assumption that if you don't get the problem right, you won't get hired. That definitely is NOT the case in finance. We use the brain teasers and puzzles as a way to showcase how you think. For my interview, out of 5 brain teasers I nailed 2, was heavily helped through 2 more, and never got the last one, even with lots of help. But for each, the interviewer made it very clear that I was to think out loud. After getting the job, I later used the technique in interviews and gave positive reviews to those who had similarly struggled through puzzles but had used a similar thought process. In general we used this to weed out three different types of people:

1. Hard science majors who learned how to solve problems instead of think through problems. These people learned how to derive the heat diffusion equation, but would never put a story modeling a random walk in connection with that equation.

2. People who freeze when things get tough. Obviously a bad thing on the trade floor. While with coding you can often walk away from a hard problem, think about it, and come back, in finance, you can't walk away from losing lots of money over a short period of time ... you have to stop the bleeding.

3. People who learned how to think quickly and with rigorous process. The type of people you want.