This ultimately reduces the quality of entry-level hires, as it becomes difficult for the average interviewer to figure out who’s good at developing software, and who’s merely good at whiteboard interviewing.
Why is hiring broken? It starts at the whiteboard.
Quincy Larson

This is basically the same issue with standardized test, like the SAT! They test how well you can take a test, not if you know the content and knowledge associated with the tested subjects!

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