Time Left - 15:00 mins

XAT 2017 Decision Making Test

Attempt now to get your rank among 165 students!

Question 1

Questions are based on a set of conditions. In answering some of the questions, it may be useful to draw a rough diagram. Choose the response that most accurately and completely answers each question.
In a local pet store, seven puppies wait to be introduced to their new owners. The puppies, named Ashlen, Blakely, Custard, Daffy, Earl, Fala and Gabino, are all kept in two available pens. Pen 1 holds three puppies, and pen 2 holds four puppies.
If Gabino is kept in pen 1, then Daffy is not kept in pen 2.
If Daffy is not kept in pen 2, then Gabino is kept in pen 1.
If Ashlen is kept in pen 2, then Blakely is not kept in pen 2.
If Blakely is kept in pen 1, then Ashlen is not kept in pen 1.
Which of the following groups of puppies could be in pen 2?

Question 2

Questions are based on a set of conditions. In answering some of the questions, it may be useful to draw a rough diagram. Choose the response that most accurately and completely answers each question.
In a local pet store, seven puppies wait to be introduced to their new owners. The puppies, named Ashlen, Blakely, Custard, Daffy, Earl, Fala and Gabino, are all kept in two available pens. Pen 1 holds three puppies, and pen 2 holds four puppies.
If Gabino is kept in pen 1, then Daffy is not kept in pen 2.
If Daffy is not kept in pen 2, then Gabino is kept in pen 1.
If Ashlen is kept in pen 2, then Blakely is not kept in pen 2.
If Blakely is kept in pen 1, then Ashlen is not kept in pen 1.
If Earl shares a pen with Fala, then which of the following MUST be true?

Question 3

Questions are based on a set of conditions. In answering some of the questions, it may be useful to draw a rough diagram. Choose the response that most accurately and completely answers each question.
In a local pet store, seven puppies wait to be introduced to their new owners. The puppies, named Ashlen, Blakely, Custard, Daffy, Earl, Fala and Gabino, are all kept in two available pens. Pen 1 holds three puppies, and pen 2 holds four puppies.
If Gabino is kept in pen 1, then Daffy is not kept in pen 2.
If Daffy is not kept in pen 2, then Gabino is kept in pen 1.
If Ashlen is kept in pen 2, then Blakely is not kept in pen 2.
If Blakely is kept in pen 1, then Ashlen is not kept in pen 1.
If Earl and Fala are in different pens, then which of the following must NOT be true?

Question 4

Read the following caselet and choose the best alternative

Shekhar, an MBA from Singapore returned to his hometown-Jamshedpur. Jamshedpur had a population of 10 lacs with one of the highest per capita income among India cities. Shekhar loved music. While listening to his favourite song on “satellite radio”, he wondered if he could mix his passion with business. Incidentally, a few weeks later, while called for expression of interest from potential franchisees. Jamshedpur did not have a single good music outlet, where its residents could buy quality, variety and the latest from the world of music.

Music world wanted the potential franchisees to own minimum 1200 square feet space and invest Rs.30 lacs. Profits were to be shared in the ratio of 3:7 between Music World and the franchisee. While Shekhar was excited about working with a renowned brand, he was worried if Rs. 30 lacs was too high an amount to shell out. He did not have the entire amount with him and was thinking of borrowing from the bank. He made enquiries with other Music World franchisees located in towns like Patna and Ranchi, as he expected similar footfall in Jamshedpur. A franchisee in Patna had sales revenue varying from 1-2 lacs rupees per month with profit margin in the range of 25- 30%. Satisfied, Shekhar decided to proceed.

Soon, he was on a look out for the space. Jamshedpur had three main areas - Bistupur, Sakchi and Sonari. All areas were inter-connected by good roads. Bistupur was a business area where most of High end retail formats were located. Most upper middle class and higher class customers shopped there. It was also the education hub of the city. On the other hand, Sakchi was a growing Lower middle class business area and Sonari had mostly residential population.

Shekhar was in favour of choosing Bistupur as it was the place where he shopped. However, he soon stumbled across problems. Not only it was difficult to obtain space in Bistupur but property Rentals touched 30-40 rupees per square feet month. Rentals at Sakchi and Sonari were in the Range of 15-20 rupees per square feet per month. Also, Shekhar’s friend, who stayed in Sakchi, told him that a few branded outlets were opening in Sakchi and it seemed to be the fastest growing market in Jamshedpur, with highest ratio of teenagers. But, Shekhar was not in favour of Sakchi due to its low image. He expected to target college going crowd in Bistupur.

High real estate prices in Bistupur and his low assessment of Sakchi market created confusion in Shekhar’s mind. To give the decision a serious and fresh thought, he decided to hit Jamshedpur- Ranchi highway in his newly acquired car.
How best should Shekhar resolve his confusion?

Question 5

Read the following caselet and choose the best alternative

Shekhar, an MBA from Singapore returned to his hometown-Jamshedpur. Jamshedpur had a population of 10 lacs with one of the highest per capita income among India cities. Shekhar loved music. While listening to his favourite song on “satellite radio”, he wondered if he could mix his passion with business. Incidentally, a few weeks later, while called for expression of interest from potential franchisees. Jamshedpur did not have a single good music outlet, where its residents could buy quality, variety and the latest from the world of music.

Music world wanted the potential franchisees to own minimum 1200 square feet space and invest Rs.30 lacs. Profits were to be shared in the ratio of 3:7 between Music World and the franchisee. While Shekhar was excited about working with a renowned brand, he was worried if Rs. 30 lacs was too high an amount to shell out. He did not have the entire amount with him and was thinking of borrowing from the bank. He made enquiries with other Music World franchisees located in towns like Patna and Ranchi, as he expected similar footfall in Jamshedpur. A franchisee in Patna had sales revenue varying from 1-2 lacs rupees per month with profit margin in the range of 25- 30%. Satisfied, Shekhar decided to proceed.

Soon, he was on a look out for the space. Jamshedpur had three main areas - Bistupur, Sakchi and Sonari. All areas were inter-connected by good roads. Bistupur was a business area where most of High end retail formats were located. Most upper middle class and higher class customers shopped there. It was also the education hub of the city. On the other hand, Sakchi was a growing Lower middle class business area and Sonari had mostly residential population.

Shekhar was in favour of choosing Bistupur as it was the place where he shopped. However, he soon stumbled across problems. Not only it was difficult to obtain space in Bistupur but property Rentals touched 30-40 rupees per square feet month. Rentals at Sakchi and Sonari were in the Range of 15-20 rupees per square feet per month. Also, Shekhar’s friend, who stayed in Sakchi, told him that a few branded outlets were opening in Sakchi and it seemed to be the fastest growing market in Jamshedpur, with highest ratio of teenagers. But, Shekhar was not in favour of Sakchi due to its low image. He expected to target college going crowd in Bistupur.

High real estate prices in Bistupur and his low assessment of Sakchi market created confusion in Shekhar’s mind. To give the decision a serious and fresh thought, he decided to hit Jamshedpur- Ranchi highway in his newly acquired car.
Suppose sales in Patna ad Bistupur are likely to be same, how many years would it take for Shekhar to recoup the investment (consider zero inflation)?

Question 6

Read the following caselet and choose the best alternative

Shekhar, an MBA from Singapore returned to his hometown-Jamshedpur. Jamshedpur had a population of 10 lacs with one of the highest per capita income among India cities. Shekhar loved music. While listening to his favourite song on “satellite radio”, he wondered if he could mix his passion with business. Incidentally, a few weeks later, while called for expression of interest from potential franchisees. Jamshedpur did not have a single good music outlet, where its residents could buy quality, variety and the latest from the world of music.

Music world wanted the potential franchisees to own minimum 1200 square feet space and invest Rs.30 lacs. Profits were to be shared in the ratio of 3:7 between Music World and the franchisee. While Shekhar was excited about working with a renowned brand, he was worried if Rs. 30 lacs was too high an amount to shell out. He did not have the entire amount with him and was thinking of borrowing from the bank. He made enquiries with other Music World franchisees located in towns like Patna and Ranchi, as he expected similar footfall in Jamshedpur. A franchisee in Patna had sales revenue varying from 1-2 lacs rupees per month with profit margin in the range of 25- 30%. Satisfied, Shekhar decided to proceed.

Soon, he was on a look out for the space. Jamshedpur had three main areas - Bistupur, Sakchi and Sonari. All areas were inter-connected by good roads. Bistupur was a business area where most of High end retail formats were located. Most upper middle class and higher class customers shopped there. It was also the education hub of the city. On the other hand, Sakchi was a growing Lower middle class business area and Sonari had mostly residential population.

Shekhar was in favour of choosing Bistupur as it was the place where he shopped. However, he soon stumbled across problems. Not only it was difficult to obtain space in Bistupur but property Rentals touched 30-40 rupees per square feet month. Rentals at Sakchi and Sonari were in the Range of 15-20 rupees per square feet per month. Also, Shekhar’s friend, who stayed in Sakchi, told him that a few branded outlets were opening in Sakchi and it seemed to be the fastest growing market in Jamshedpur, with highest ratio of teenagers. But, Shekhar was not in favour of Sakchi due to its low image. He expected to target college going crowd in Bistupur.

High real estate prices in Bistupur and his low assessment of Sakchi market created confusion in Shekhar’s mind. To give the decision a serious and fresh thought, he decided to hit Jamshedpur- Ranchi highway in his newly acquired car.
What could be the most likely reason for Shekhar’s bias in favour of Bistupur?

Question 7

Read the following caselet and choose the best alternative

Shekhar, an MBA from Singapore returned to his hometown-Jamshedpur. Jamshedpur had a population of 10 lacs with one of the highest per capita income among India cities. Shekhar loved music. While listening to his favourite song on “satellite radio”, he wondered if he could mix his passion with business. Incidentally, a few weeks later, while called for expression of interest from potential franchisees. Jamshedpur did not have a single good music outlet, where its residents could buy quality, variety and the latest from the world of music.

Music world wanted the potential franchisees to own minimum 1200 square feet space and invest Rs.30 lacs. Profits were to be shared in the ratio of 3:7 between Music World and the franchisee. While Shekhar was excited about working with a renowned brand, he was worried if Rs. 30 lacs was too high an amount to shell out. He did not have the entire amount with him and was thinking of borrowing from the bank. He made enquiries with other Music World franchisees located in towns like Patna and Ranchi, as he expected similar footfall in Jamshedpur. A franchisee in Patna had sales revenue varying from 1-2 lacs rupees per month with profit margin in the range of 25- 30%. Satisfied, Shekhar decided to proceed.

Soon, he was on a look out for the space. Jamshedpur had three main areas - Bistupur, Sakchi and Sonari. All areas were inter-connected by good roads. Bistupur was a business area where most of High end retail formats were located. Most upper middle class and higher class customers shopped there. It was also the education hub of the city. On the other hand, Sakchi was a growing Lower middle class business area and Sonari had mostly residential population.

Shekhar was in favour of choosing Bistupur as it was the place where he shopped. However, he soon stumbled across problems. Not only it was difficult to obtain space in Bistupur but property Rentals touched 30-40 rupees per square feet month. Rentals at Sakchi and Sonari were in the Range of 15-20 rupees per square feet per month. Also, Shekhar’s friend, who stayed in Sakchi, told him that a few branded outlets were opening in Sakchi and it seemed to be the fastest growing market in Jamshedpur, with highest ratio of teenagers. But, Shekhar was not in favour of Sakchi due to its low image. He expected to target college going crowd in Bistupur.

High real estate prices in Bistupur and his low assessment of Sakchi market created confusion in Shekhar’s mind. To give the decision a serious and fresh thought, he decided to hit Jamshedpur- Ranchi highway in his newly acquired car.
Which one of the following is the most important decision criterion is such a business Situation?
  • 165 attempts
  • 3 upvotes
  • 2 comments
Aug 23CAT & MBA