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How to solve any coding challenge

First, why?

Coding challenges (or tests) have been used by software companies to determine suitable candidates for decades. Some of us have questioned why EVERY single developer position must be made subject to the Ivory Tower play of algorithms and data structures. Afterall, a recent survey found that more than 50% of successful candidates who passed those tests ended up doing tasks that required practically nothing related to what the tests were meant to determine/assess.

So, why?

Why put otherwise talented/creative prospects through the mental-meat-grind? Especially as another survey found that more than 70% of companies lost out on good prospects simply because these companies were so fixated on the tests.

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Why do they do it then?

Find out the answer in Part 2