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What should I do if I am asked a Technical question and I simply do not know the answer?

If you are 100% sure you don't know the answer, simply be honest but qualify it. Say I am sorry I am not 100% sure on the answer to this question but I am writing it down (if you have a pad in front of you) or say I am making a mental note and when we are done here I will be looking this up.

There was a time when I was interviewing for a position and I was asked a question and I really didn't know the answer, instead of being honest I made up an answer. The Hiring Manager (HM) simply said "OK". I then later thought about it and felt he knew I was just "making something up". Needless to say I didn't get the position.

In another interview when I didn't know the answer (it was a phone interview) I said "honestly I am not sure about the answer, but I am making a note of it and will be reading up on this when we are done today", then I added "this is how I carry myself when I don't know the answer to something I research and return". A day later I was offered the position, and later I found out one of the reasons was because I was honest and didn't make up an answer.