After successfully completing the CAT 2016 sprint series and the SNAP 2016 sprint series, we are back with the XAT 2017 sprint preparation series – Decision making 6 to boost your prep. This series will consist of 10 sets of questions from past year XAT papers, leading to XAT 2017 and covered almost all the question types that you needed to know come the 8th of January.


XAT 2017 sprint preparation series – Decision making 6


1. There is a lot of interest in the first five ranks for Class XI students. One student guessed the rank order as Ankita, Bhagyashree, Chanchal, Devroopa and Esha. Later upon announcement of the result, it was found that not only did he get each student out off her true position, none of the students in his ranking correctly followed her immediate predecessor. Another student guessed Devroopa, Ankita, Esha, Chanchal and Bhagyashree. Even his guess was wrong. It was found that he had got two positions correct, and two students in his ranking correctly followed their immediate predecessors. Which of the following is true about the correct rank order?

A. Ankita got the third position

B. Bhagyashree got the fourth position

C. Chanchal got the second position

D. Devroop stood first

E. Esha got the fourth position

Directions for question 2 to 3: Read the following caselet and choose the best alternative.

Island of growth was witnessing a rapid increase in GDP. Its citizens had become wealthier in recent times, and there had been a considerable improvement in the standards of living. However, this rapid growth had increased the nepotism in the Island. In the recent times, a fear had gripped the population that corruption would destroy the inclusive nature of the society and hinder economic progress. However, most citizens had kept quiet because:

a. They had benefitted from the corruption indirectly, if not directly.

b. They did not have time and energy to protest.

c. They did not have courage to rise against the established power centers.

There was a need to remove corruption but no one was willing to stick his neck out. Many politicians, bureaucrats and private organization were corrupt. Media and intellectuals kept quiet as they benefitted indirectly from corruption. The common man was scared of state’s retribution and the youngsters feared insecure future.

Against this background, an old, unmarried and illiterate gentleman of high moral and ethical authority, Shambhu, decided to take on the issue of corruption. He sat on a hunger strike in the heart of the capital city of the Island. Shambhu demanded that the Government should constitute new laws to punish the corrupt across all walks of life. Media and the citizens of the island gave massive support to Shambhu. Buckling under the pressure, the Government promised to accept Shambhu’s demands. He ended the hunger strike immediately following the Government’s announcement. Shambhu became the darling of the media. He used this opportunity as a platform to spread the message that only citizens with an unblemished character should be allowed to hold a public office.

A few months later, it was found that the government had not fulfilled any of its promises made to Shambhu. Infuriated, he was thinking of launching another island-wide protest. However, this time, he sensed that not many people and media person were willing to support him.

2. Read the following statements:

1. People’s latent anger against corruption

2. Shambhu’s moral courage

3. Hungry media looking to raise issues

4. Raising income level

In your opinion, which combination of the above statements is the most unlikely reason for Shambhu’s initial success?

A. 1, 2, 4

B. 3, 4

C. 1, 3

D. 1, 3, 4

E. 1, 2, 3, 4

3. Which of the following could be the most likely reason for decline in public support for Shambhu?

A. The common man had become sick and tired of Government’s inaction against rising corruption.

B. Shambhu was old and he lacked the energy to garner the same support that he enjoyed from the media and the public in the initial stages.

C. The general public may have realized that Shambhu was focusing too much on “indirect involvement” in past incidences of corruption. Common men found it difficult to live up to the high standards set by Shambhu

D. Shambhu’s colleagues were misleading him.

E. Shambhu came from a village, while most of his supporters were city dwellers.

Directions for question 4 to 6: Read the following caselet and choose the best alternative.

Head of a nation in the Nordic region was struggling with the slowing economy on one hand and restless citizens on the other. In addition, his opponents were doing everything possible to discredit his government. As a famous saying goes, “There is no smoke without a fire”, it cannot be said that the incumbent government was doing all the right things. There were reports of acts of omission and commission coming out every other day.

Distribution of public resources for private businesses and for private consumption had created a lot of problems for the government, it was being alleged that the government has given the right to exploit these public resources at throw-away prices to some private companies. Some of the citizens were questioning the government policies in the Supreme Court of the country as well as in the media. In the midst of all this, the head of the nation called his cabinet colleagues for a meeting on the recent happenings in the country.

He asked his minister of water resources about the bidding process for allocation of rights to setup mini-hydel power plants. To this, the minister replied that his ministry had followed the laid out policies of the government. Water resources were allocated to those private companies that bid the highest and were technically competent. The minister continued that later on some new companies had shown interest and they were allowed to enter the sector as per the guidelines of the Government.

This, the minister added, would facilitate proper utilization of water resources and provide better services to the citizens. The new companies were allocated the rights at the price set by the highest bidders in the previous round of bidding. After hearing this, the head of the nation replied that one would expect the later allocations to be done after a fresh round of bidding. The minister of water resources replied that his ministry had taken permissions from the concerned ministries before allocating the resources to the new companies.

4. Media reports suggested that the minister of water resources had deliberately allocated the water resources at old prices to the new companies, and in return some received kickbacks. However, the minister denied these charges. His counter argument was that he followed the stated policies of the Government and it is very difficult to price a scarce resource. He also said that the loss that the media is talking about is notional and in reality the Government and the citizens have gained by the entry of new players. Which of the following is the most appropriate inference?

A. If benefit to the citizens is higher than notional losses then it is not unethical.

B. If benefit to the citizens is lower than notional losses then it is unethical.

C. If benefit to the citizens is higher than actual losses then it is not unethical.

D. If benefit to the citizens is lower than actual losses then it is unethical.

E. All of the above A, B, C and D are inappropriate.

5. Subsequently, the minister questioned the role of the media in the whole affair. He said that the media cannot act like a reporter, prosecutor and judge at the same time. Mr. Swamy, an independent observer, was asked about appropriateness of the minister’s opinion. What should be Mr. Swamy’s reply?

A. Media has been rightly accused by the minister.

B. Minister’s statement may be factually incorrect.

C. Media has rightly accused the minister.

D. Media has wrongly accused the minister.

E. None of above

6. Looking at the public unrest and discontent, the Government’s anti-corruption branch was entrusted with the task of investigating the matter. Within a week’s time the branch charge-sheeted top corporate managers and the minister for wrong doings. Mr. Swamy was again asked to identify the guilty. Whom should Mr. Swamy pick?

A. Only corporate managers.

B. Only the minister.

C. Only the Head of the nation.

D. All of the above

E. None of the above.

7. Over the last years, Bank of Bharat has seen the number of its retail customer accounts drop by over 40 percent. Over the same period, the share price of Bank of Bharat has increased by more than 80 percent. This amazed a few investors, who believe that a bank’s share price should drop if its number of customers drops.

Which of the following, if true over the last years, best accounts for the observed movement in the price of Bank of Bharat’s equity shares?

A. Two years ago Securities and Exchange Board started an investigation on the bank for accounting irregularities, but last year the company was cleared of all charges.

B. The bank recently implemented a highly publicized program for free home loans.

C. The bank has been switching its customer base from retail customers to commercial customers, which now accounts for over 75 percent of the bank’s revenues.

D. There have been many new banks, which have entered retail banking business over the last five years.

E. The bank is known to be the best paymaster in the industry.

8. Gastric bypass surgery has been shown to be effective at helping extremely obese people lose weight. Some patients have lost as much as 300 pounds after undergoing the surgery, thereby substantially prolonging their lives. Despite the success of the treatment, most doctors have not embraced the surgery.

Which of the following statements, if true, best accounts for the lukewarm reaction of the medical community to gastric bypass surgery?

A. Gastric bypass surgery carries a high risk of serious complications, including death.

B. Obesity is one of the leading contributors to heart disease and hypertension, two leading causes of death.

C. Incidences of obesity among the Indian urban middle class population have been increasing consistently for the last three decades.

D. Many patients report that losing weight through diets is ineffective, since they usually gain the weight back within six months.

E. Most health insurance plans will cover the cost of gastric bypass surgery for morbidly obese patients at high risk of heart disease.

Directions for question 9 to 11: Read the following caselet and choose the best alternative.

Marathe is a Vice President in a construction equipment company in the city of Mumbai. One day, his subordinate Bhonsle requested that Kale, a project manager, be transferred to the Chennai office from the Mumbai office. In Chennai, Kale would work alone as a researcher. Bhonsle gave the following reasons for his request: “Kale is known to frequently fight with his colleagues. Kale is conscientious and dedicated only when working alone. He is friendly with seniors, but refuses to work with colleagues, in a team. He cannot accept criticism and feels hostile and rejected. He is over-bearing and is generally a bad influence on the team.”

Marathe called upon Gore, another project manager, and sought further information on Kale. Gore recalled that a former colleague, Lakhote (who was also Kale’s former boss) had made a few remarks on his appraisal report about Kale. In his opinion, Kale was not fit for further promotion as he was emotionally unstable to work in groups though he had seven years of work experience. Lakhote had described Kale as too authoritative to work under anyone. Lakhote had further told Gore that Kale had an ailing wife, and an old mother, who does not want to stay with his wife

9. Consider the following solutions to the problem mentioned above:

1. Marathe should transfer Kale to Chennai office

2. Marathe should try and verify the facts from other sources as well

3. Kale should be sacked

4. Kale should be demoted

5. Marathe should suggest Kale to visit a family counselor

Which of the following would be the most appropriate sequence of decisions in terms of immediacy: starting from immediate to a longer term solution

A. 2, 1, 5

B. 1, 4, 2

C. 2, 3, 4

D. 2, 5, 1

E. 2, 5, 4

10. Marathe sought an appointment with Lakhote to find out ways to help Kale. Lakhote is of the opinion that the company’s responsibility is restricted to the workplace and it should not try to address the personal problems of employees. If Marathe has to agree to Lakhote’s opinion, which of the solutions presented in the previous question would be weakened:

A. 1

B. 2

C. 3

D. 4

E. 5

11. Which of the following statements, if true, would weaken the decision to sack Kale the most?

A. A Government of India study established that employees with 5-10 years of work experience tend to have conflicting responsibilities at home and office. However these conflicts wither away after 10 years of experience.

B. Another article published in the magazine, Xaviers Quarterly, highlighted that employees’ problems at home affect their performance at work.

C. In the latest issue of a reputed journal, Xaviers Business Review, it was published that most top managers find it difficult to work in a group.

D. It was published in Xaviers Management Review (another reputed journal) that individuals who cannot work in teams find it difficult to adjust to a new location.

E. Bhonsle was of the opinion that emotionally unstable persons find it difficult to get back to normal working life.


1. Option a.

XAT 2017 sprint preparation series - Decision making 6

2. Option b.

3. Option c.

4. Option c.

5. Option b.

6. Option e.

7. Option c.

8. Option a.

9. Option d.

10. Option e.

11. Option a.

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You can follow the entire sprint series here: XAT 2017 Sprint Preparation Series by Learningroots

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