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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 8 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 8

Directions for questions 1 to 3: Answer questions on the basis of information given in the following case.

Bright Engineering College (BEC) has listed 20 elective courses for the next term and students have to choose any 7 of them. Simran, a student of BEC, notices that there are three categories of electives: Job-oriented (J), Quantitative-oriented (Q) and Grade-oriented (G). Among these 20 electives, some electives are both Job and Grade-oriented but are not Quantitative-oriented (JG type). QJ type electives are both job and Quantitative-oriented but are not Grade-oriented and QG type electives are both Quantitative and Grade-oriented but are not Job-oriented. Simran also notes that the total number of QJ type electives is 2 less than QG type electives. Similarly, the total number of QG type electives is 2 less than JG type and there is only 1 common elective (JQG) across three categories. Furthermore, the number of only Quantitative oriented electives is same as only Job-oriented electives, but less than the number of only Grade-oriented electives. Each elective has at least one registration and there is at least one elective in each category, or combinations of categories.

1. On her way back Simran met her friend Raj and shared the above information. Raj is preparing for XAT and is only interested in Grade-oriented (G) electives. He wanted to know the number of G-type electives being offered. Simran replied, “You have all the information. Calculate the number of G-type electives yourself. It would help your XAT preparation”. Raj calculates correctly and says that there can be _______ possible answers. Which of the following options would best fit the blank above?

(1) 3

(2) 5

(3) 8

(4) 9

(5) 11

2. Simran prefers J-type electives and wants to avoid Q-type electives. She noted that the number of only J-type electives is 3. Raj’s preference is G-type electives followed by Q-type electives. However, they want to take as many common electives as possible. What is the maximum number of electives that can be common between them, without compromising their preferences?

(1) 3

(2) 4

(3) 5

(4) 7

(5) Not possible to answer from the above information.

3. Vijay and Raj want to avoid each other. Vijay is interested in J-type electives and wants to avoid Q-type electives. Raj’s preference is Q-type electives followed by Q-type electives. Raj noted that the number of only G-type electives is 2. Is there a possibility that they would not share any common electives(s)?

(1) Yes. There is a possibility

(2) No. They would meet in one elective.

(3) No. They would not be able to avoid in two electives.

(4) No. They meet in five electives.

(5) Cannot be solved with the information given.

Directions for questions 4 to 6: Answer questions on the basis of information given in the following case. Mr. Dipangshu Barua, a young IT professional, came early to office to assist his boss in the preparation for an important client presentation. When be switched on his computer, he saw an email from Mr. Patel. The email was as follows:

Dear Mr. Barua,

This email serves as a follow-up of my conversation with you on December 1, 2014. I have already conveyed need for improvement in your behaviour as desired as desired by your project leader and colleagues. They are yet to notice any visible improvements. I am apprehensive that your failure to act may warrant further action leading to dismissal. I will continue to monitor and assess your performance over the next three months to determine whether improvements meet the expectations. At the same time, I would like to re-affirm that you are very valuable for our organization.

Best Wishes,

Mr. A. Patel

HR Director

4. Initially, the e-mail distracted Dipangshu but he decided to focus on the job. Which of the following options might best explain his decision to do so?

(1) Mr. Patel would soon be transferred to another department.

(2) Last week, Mr. Dipangshu has been assigned to a new team in the same project.

(3) Three days back, Mr. Dipangshu has been assigned a new project similar to his final year engineering project.

(4) His friend has been hospitalized for the last three months.

(5) Failing to perform in the client meeting might further complicate things.

5. The scheduled presentation went off smoothly. Back in his cabin, Dipangshu read Mr. Patel’s e-mail once more and pondered over it. During the last meeting he tried hard to put forward his explanation but Mr. Patel had not allowed him to speak. Dipangshu was thinking of meeting Mr. Patel once again but was doubtful that would help. Incidentally, he had a job offer from a start-up with a comparable salary. If Dipangshu was to join the new job, he had to accept the offer within the next two weeks. However, he cannot think of a life without a job. Dipangshu was confused! Which of the following options would be the best move for Dipangshu?

(1) Talk to Mr. Patel and highlight the initiatives he has taken but at the same time start applying for other jobs.

(2) Reject the offer from the start-up. Use the next three months to find a better job, but continue in the present job.

(3) Resign from this organization right now.

(4) Accept the offer, only if the start-up gives a salary hike, else keep prospecting.

(5) Accept the offer with a request to give him a 10% salary hike.

6. After a couple of weeks, Mr. Patel came to know that Dipangshu’s project leader Mr. John, a very competent senior executive, may have wilfully influenced his team members to file a wrong complaint against Dipangshu. Mr. John may have done it because Dipangshu has refused to tow John’s line. Mr. Patel also came to know that Dipangshu was thinking of quitting this job. He felt regretful about his letter to Dipangshu. He wanted to resolve the complicated situation. He was contemplating following five actions in his mind.

I. Talk to Mr. John about Dipangshu and convey to him that losing a bright employee would cost the organization dearly.

II. Catch up with Mr. John during coffee break and convey that Dipangshu has a very good track record.

III. Chat with Dipangshu during coffee break.

IV. Catch up with Dipangshu during coffee break and convey that the organization values him.

V. Arrange a meeting among Mr. John, Dipangshu and himself to sort out the difference.

Which of the following is the best sequence of actions for resolving the problem?

(1) I, III, V

(2) II, III, V

(3) I, II, IV

(4) I, IV, V

(5) III, IV, V

Directions for questions 7 to 9: Answer questions on the basis of information given in the following case. A few years back Mr. Arbit and Mr. Boring started an oil refinery business. Their annual earing is currently just 50,000 million rupees. They are now exploring various options to improve the business. Mr. Xanadu, a salesperson from Innovative Technology Solutions (ITS), is trying to sell a new oil refinery technology to Mr. Arbit and Mr. Boring. This technology could potentially enhance their annual earning to 150,000 million rupees within a year. But they have to make one-time investment of 100,000 million rupees to implement the technology. If the technology is not successful, the investment would be lost. Mr. Arbit and Mr. Boring are discussing about possible risks of the investment.

7. Mr. Arbit is enthusiastic about this investment idea but Mr. Boring is a little sceptical. This impasse makes them approach a consultant. The consultant makes some observations.

Which of the following observations, made by the consultant, might reduce Mr. Arbit’s enthusiasm for the new investment idea?

(1) Investment is warranted only when benefits outweigh costs.

(2) Technology investments give higher earnings in future.

(3) Investment in technology leads to reduction of costs in the long run.

(4) Technology risks can be controlled.

8. In order to sell the technology to Mr. Arbit and Mr. Boring, Mr. Xanadu is thinking of five possible sales pitches.

Which of the following sales pitches would reduce uncertainties the most for Mr. Arbit and Mr. Boring?

(1) All other competitors are aggressively investing in risky technologies.

(2) If the technology succeeds, the annual earnings would grow 3 times from the next financial year and they would be able to recover the invested money within 1 year.

(3) Preliminary studies indicate that success rate of the technology is 85%.

(4) The R&D team of ITS is working to counter any possible downside of the technology.

9. Mr. Arbit and Mr. Boring did not invest in the new technology, but the new technology is a big success. Repentant, they are now estimating the additional amount they would have earned (i.e. forgone earnings) had they invested in the new technology. However, the two owners differed on expected lifespan of the new technology. Mr. Arbit expected lifespan to be 5 years, whereas, Mr. Boring expected it to be 2 years. After the technology gets outdated, the earnings from the business would drop back to 50,000 million rupees.

What would be the difference between two expected foregone earnings after 5 years of the technology investment, if yearly earnings are deposited in a bank @10%, compounded annually?

Note: Forgone Earnings = (Earnings from business with new technology) – (Earnings from business without new technology)

(1) 231,200 million rupees

(2) 331,000 million rupees

(3) 400,510 million rupees

(4) 431,000 million rupees

(5) 464,100 million rupees

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