Analytical Reasoning and Decision Making for XAT

Dear readers,

This quiz consists of questions from past
actual XAT papers. Leave your answers/ responses in the comments section below
and soon we’ll let you know the correct answers!

Directions (Question No 1-5): This group of questions is based on a set of
conditions. In  answering some  of 
the  questions, it may be  useful 
to draw a rough  diagram.
Choose  a response that most accurately
and completely answers each question.

A circular field, with inner radius of 10 meters and outer radius of 20
meters, was divided into five 
successive  stages for  ploughing. The  ploughing of 
each  stage  was handed over  to a 
different farmer. 

1. Farmers are referred to by following symbols: F1, F2, F3, F4, F5. 

2. The points between different stages of project are referred to by the
following symbols: P1,  P2, P3, P4, P5,
not necessarily in that order. 

3. Farmer F5 was given the work of ploughing stage starting at point
P4. 

4. The stage from point P5 to point P3 was not the first stage. 

5. Farmer F4 was given the work of the fourth stage. 

6. Stage 3 finished at point P1, and the work of which was not given to
farmer F1. 

7. Farmer F3 was given work of stage ending at point P5.  

 

1. Which was the finish point for farmer F2?  

A. P1               B. P2                C. P3                D.
P4               E.
P5  

2. Which stage was ploughed by farmer F5?  

A. First            B. Second        C. Third 
        D. Fourth        E.
Fifth  

3. Which were the starting and finishing points for stage 2?  

A. P2 and P5 

B. P5 and P3 

C. P3 and P1 

D. P5 and P4 

E. P3 and P2  

4. For which farmer was P2 a finishing point?  

A. F1                B. F2                C. F3                D.
F4                E.
F5  

5. Which was the starting point for farmer F3?  

A. P2               B. P3                C. P4                 D. P1              E.
None of above

6. Children are in pursuit of a dog whose leash has broken. Krishnarajan is
directly behind the dog. Rangarajan is behind Krishnarajan. Natrajan is behind
Rangarajan. Premrajan is ahead of the dog walking  down 
the street in the  opposite
direction. As the children and  dog  pass, 
Premrajan turns around and joins the pursuit. He runs in behind
Rangarajan. Krishnarajan runs  faster and
is alongside the dog on the left. Rangarajan runs faster and is alongside the
dog on the right. Which child is directly behind the dog?  

A. Krishnarajan 

B. Rangarajan 

C. Natrajan 

D. Premrajan 

E. None of above

Read the following caselet and choose the best alternative (Questions 7-10):   

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.  

7. How best should Shekhar resolve his confusion?  

A. By investing in the franchise 

B. Do not invest in the franchise and look for different brand name. 

C. Go back to Singapore and start to find the drivers and potential of the
business. 

D. Do a further in-depth study to find the drivers and potential of the
business. 

E. Approach another music company for setting up a franchise.  

8.  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)?  

A. Less than five years. 

B. Less than seven years. 

C. Less than eight years. 

D. Less than nine years. 

E. May be never.  

9. What could be the most likely reason for Shekhar’s bias in favour of
Bistupur?  

A. Presence of college going crowd, as he felt they were the customers for
the latest music. 

B. Crowded (hoi polio) image of Sakchi. 

C. It was difficult for Shekhar to associate non – Bistupur areas with good
quality products. 

D. Higher rentals in Bistupur. 

E. Patronage of Bistupur shops by executive and their families.  

10. Which one  of  the 
following  is the  most 
important decision criterion is such a 
business Situation?  

A. Financial capability of entrepreneur. 

B. Changes in music industry. 

C. Future market growth. 

D. Profitability of business in first couple of years. 

E. Real Estate prices.  

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Answers

1(a)    2(e)    
3(b)    4(e)     5(a)   
 6(d)   7(d)   
8(e)     9(a)    10(e)   

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