XAT 2014

Instructions

Answer questions based on information that is provided.

Question 31

Read the following newspaper report: In a new study by Harvard School of Public Health (HSPH), researchers explored how caffeine can serve as a “mild anti - depressant”. They concluded that “drinking
several cups of coffee daily appears to reduce the risk of suicide”. Data pulled in from three large studies in the US showed that the suicide risk of those who drank two to four cups of caffeinated coffee a day was
about half of those who drank decaffeinated coffee or very little or no coffee. In the studies, a respondent’s caffeine consumption was assessed every four years through a questionnaire. The respondents were all adults, and the study was published online. The authors, however, cautioned the public from increasing coffee intake as it could result in “unpleasant side effects”. “Overall, our results suggest that there is
little further benefit for consumption above two to three cups/day or 400 mg of caffeine/day,” wrote the researchers. The authors observed that there` was no major difference in suicide risk for adults who drank two to three cups a day from those who drank four cups or more.
Which of the following shaped graph would best capture the above paragraph(x - axis represents “coffee intake” and “Y - axis represents “suicidal tendency”)?

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Question 32

A group of nine runners will finish the 400 meters race in a certain order. The runners are:
Ashok, Benjamin, Chetan, Divya, Eshant, Girish, Himani, and Irravaty. They all finish at different times, and their finishing order is as follow:
1.Faneesh finishes before Ashok
2.Divya finishes before Benjamin and Eshant
3.Irravaty finishes after Chetan
4.Girish finishes after Ashok
Which is the best position Girish can finish?

Video Solution


Instructions

Read the following case  – let and answer the that follow


Ms. Banerjee, class teacher for 12th standard, wants to send teams (based on past performance) of three students each to district, state, national, and international competition in mathematics.Till now, every student of the class has appeared in 100 school level tests. The students had following distribution of marks in the tests, in terms of “average” and “number of times a student scored cent per cent marks”.


Ms. Banerjee has carefully studied chances of her school winning each of the competitions. Based on in - depth calculations, she realized that her school is quite likely to win district level competition but has low chances of winning the international competition. She listed down the following probabilities of wins for different competitions. Prize was highest for international competition and lowest for district level competition (in that order).


All the students are studying in the school for last twelve years. She wanted to select the best team for all four competitions (Ms. Banerjee had no other information to select students).

Question 33

Which of three members should form the team for the International competition?

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Question 34

Which of the following members should constitute the team for the district level competition?

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Question 35

Ms. Banerjee has to select the team for national competition after she has selected the team for
international competition. A student selected for international competition cannot be a part of national competition. Which is the best team for the national competition?

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Instructions

Read the following case - let and answer the question that follow

Krishna Reddy was the head of a pharmaceutical company that was trying to develop a new product. Reddy, along with his friend Prabhakar Rao, assessed that such products had mixed success. Reddy and Rao realized that if a new product (a drug) was a success, it may result in sales of 100 crores but if it is unsuccessful, the sales may be only 20 crores. They further assessed that a new drug was likely to be successful 50% of times. Cost of launching the new drug was likely to be 50 crores.


Question 36

How much profit can the company expect to earn if it launches the new drug(suppose there are no additional costs)?

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Question 37

Now, Reddy and Rao were in a quandary whether the company should go ahead and market the drug. They
contacted Raj Adduri, a common friend for advice. Adduri was of the opinion that given the risky nature of the launch, it may be a better idea to test the market. Rao and Reddy realized test marketing would cost 10
crores. Adduri told them the previous test marketing results have been favourable 70% of times and success rate of products favourably tested was 80%. Further, when test marketing results were unfavourable; the products have been successful 30% of the times.

How much profit can the company expect to make if the product is launched after favourable test marketing results(assume there are no additional costs)?

Video Solution


Question 38

Now, Reddy and Rao were in a quandary whether the company should go ahead and market the drug. They
contacted Raj Adduri, a common friend for advice. Adduri was of the opinion that given the risky nature of launch, it may be a better idea to test the market. Rao and Reddy realized test marketing would cost 10
crores. Adduri told them the previous test marketing results have been favorable 70% of times and success
rate of products favorably tested was 80%.Further, when test marketing results were unfavorable; the products have been successful 30% of the times.

What is the probability of product failure if Reddy and Rao decide to test market it?

Video Solution


Question 39

Now, Reddy and Rao were in a quandary whether the company should go ahead and market the drug. They
contacted Raj Adduri, a common friend for advice. Adduri was of the opinion that given the risky nature of launch, it may be a better idea to test the market. Rao and Reddy realized test marketing would cost 10
crores. Adduri told them the previous test marketing results have been favorable 70% of times and success
rate of products favorably tested was 80%.Further, when test marketing results were unfavorable; the products have been successful 30% of the times.

If Rao and Reddy decide to launch the product despite unfavourable test marketing, how much profit can the company expect to earn?

Video Solution


Instructions

Please read the three reports (newspaper articles) on ranking of different players and products in smart phones industry and answer the questions that follow.

Report 1: (Feb, 2013)
Apple nabs crown as current top US mobile phone vendor

Apple’s reign may not be long, as Samsung is poised to overtake Apple in April, 2013. For the first time since Apple entered the mobile phone market in 2007, it has been ranked the top mobile phone vendor in the US. For the latter quarter of 2012, sales of its iPhone accounted for 34 percent of all mobile phone sales in the US - including feature phones - according to the latest data from Strategy Analytics.

While the iPhone has consistently been ranked the top smartphone sold in the US, market research firm NPD noted that feature phone sales have fallen off a cliff recently, to the point where 8 out of every 10 mobile phones sold in the US are now smartphones. That ratio is up considerably from the end of 2011, when smartphones had just cracked the 50 percent mark. Given this fact it’s no surprise that Apple, which only sells smartphones, has been able to reach the top of the overall mobile phone market domestically. For the fourth quarter of 2012, Apple ranked number one with 34 percent of the US mobile market, up from 25.6 percent year over year. Samsung grew similarly, up to 32.3 percent from 26.9 percent - but not enough to keep from slipping to second place. LG dropped to 9 percent from 13.7 percent, holding its third place spot. It should be noted that Samsung and LG both sell a variety of feature phones in addition to smartphones. Looking only at smartphones, the ranking is a little different according to NPD. Apple holds the top spot with 39 percent of the US smartphone market, while Samsung again sits at number two with 30 percent. Motorola manages to rank third with 7 percent, while HTC dropped to fourth with 6 percent. In the US smartphone market, LG is fifth with 6 percent. Note how the percentages aren’t all that different from overall mobile phone market share - for all intents and purposes, the smartphone market is the mobile phone market in the US going forward. Still, Samsung was the top mobile phone vendor overall for 2012, and Strategy Analytics expects Samsung to be back on top soon. “Samsung had been the number one mobile phone vendor in the US since 2008, and it will surely be keen to recapture that title in 2013 by launching improved new models such as the rumored Galaxy S4”. And while Apple is the top vendor overall among smartphones, its iOS platform is still second to the Android platform overall. Samsung is the largest vendor selling Android-based smartphones, but Motorola, HTC, LG, and others also sell Android devices, giving the platform a clear advantage over iOS both domestically and globally.

Report 2: Reader’s Response (2013, Feb)

I don’t actually believe the numbers for Samsung. Ever since the debacle in early 2011, when Lenovo called into question the numbers Samsung was touting for tablet shipments, stating that Samsung had only sold 20,000 of the 1.5 million tablets they shipped into the US the last quarter of 2010, Samsung (who had no response to Lenovo) has refused to supply quarterly sales numbers for smartphones or tablets. That’s an indication that their sales aren’t what analysts are saying. We can look to several things to help understand why. In the lawsuit between Apple and Samsung here last year, both were required to supply real sales numbers for devices under contention. The phones listed turned out to have sales between one third and one half of what had been guessed by IDC and others. Tablet sales were even worse. Of the 1.5 million tablets supposedly shipped to the US during that time, only 38,000 were sold. Then we have the usage numbers. Samsung tablets have only a 1.5% usage rate, where the iPad has over 90%. Not as much a difference with the phones but it’s still overwhelmingly in favor of iPhone. The problem is that with Apple’s sales, we have actual numbers to go by. The companies who estimate can calibrate what they do after those numbers come out. But with Samsung and many others, they can’t ever calibrate their methods, as there are no confirming numbers released from the firms. A few quarters ago, as a result, we saw iSupply estimate Samsung’s smartphone sales for the quarter at 32 million, with estimates from others all over the place up to 50 million. Each time some other company reported a higher number for that same quarter, the press dutifully used that higher number as THE ONE. But none of them was the one. Without accurate self-reporting of actual sales to the end users, none of these market share charts are worth a damn!

Report 3: Contradictory survey (Feb, 2013)

iPhone5 Ranks Fifth In U.S. Customer Satisfaction Survey inShare. The iPhone5 ranks fifth in customer satisfaction according to the results of a recent survey from OnDevice Research, a mobile device research group. In the poll, they asked 320,000 smartphone and tablet users from six different countries, how satisfied they were with their devices. According to 93,825 people from the US, Motorola Atrix HD is the most satisfying and Motorola’s Droid Razr took second spot. HTC Corp (TPE : 2498)’s Rezound 4G and Samsung Galaxy Note 2 took third and fourth spots, while Apple’s iPhone5 landed in fifth spot. It appears that Apple may be lagging in consumer interest. OnDevice Research, Sarah Quinn explained, “Although Apple created one of the most revolutionary devices of the past decade, other manufactures have caught up, with some Android powered devices now commanding higher levels of user satisfaction.” Despite the lower rankings, things aren’t looking too bad for Apple Inc. (NASDAQ:AAPL) elsewhere. In the United Kingdom, they ranked second place, right after HTC One X. Interesting enough, Apple did take top spot for overall satisfaction of mobile device, whereas Google Inc. (NASDAQ:GOOG) ranked second. Motorola Mobility Holdings Inc. (NYSE:NOK) took third, fourth, and fifth places respectively, while Sony Ericsson trailed behind at sixth place. The survey sampled mobile device users in the following countries: United States, United Kingdom, France, Germany, Japan, and Indonesia. Although OnDevice didn’t share the full list of devices mentioned in the survey, it does show some insight to what customers want. Unfortunately, there were still many questions regarding the survey that were left unanswered. Everyone wants to know why Google Inc. (NASDAQ:GOOG) was on the list when they are not an actual smartphone maker and why was Samsung Electronics Co., Ltd. (LON:BC94) on the bottom of the satisfaction list when the brand is leading elsewhere.



Source: 92.825 US mobile users, July 2012 - January 2013
Fortunately, those questions were answered by OnDevice Research’s representative. He explained that the survey was conducted on mobile web where the survey software could detect the taker’s device and since user’s rate their satisfaction levels on a 1 to 10 scale, thanks to the Nexus device, Google was included.

Question 40

If you analyze the three reports above, which of the following statements would be the best inference?

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