XAT 2017: LR DI Free MCQ Practice Test with Solutions

XAT 2017: LR DI - Question 1

Analyse the following caselet and answer the questions that follow:

A pastor had eaten at a restaurant with his troupe of ten and his family. It is a norm to tip the waiter and about 20% of a waiter's salary comes from these tips. However, while paying the bill, the pastor crossed out the automatic 18% tip charged for parties of more than eight and wrote "I give God 10% why do you get 18%?" above his signature. The chagrined waitress at the restaurant posted a photo of this on the social media. She was subsequently fired for violating company's policy on customer privacy. This would have been understandable if the restaurant had not posted just 2 weeks ago a customer receipt that was complimenting them. Social media and social activists came heavily upon the management's ambivalent stand and the firing of the waitress. In response, the company posted a note on their social media page defending their actions. This quickly drew over 10,000 comments, mostly negative, to which the management started responding by posting the same note over and over again. There were also accusations of the company deleting negative comments and blocking users. The restaurant also experienced a sizable drop in their footfall.

Q. Who/what is the main cause for the situation becoming unmanageable?

A.
The pastor for flouting the norm of restaurant.
B.
The waitress for violating customer privacy.
C.
The management for not taking action against the pastor.
D.
The management for giving out disproportionate punishment to waitress.
E.
The management for removing negative comments from the social media.

Detailed Solution for XAT 2017: LR DI - Question 1

Among the options available, the root cause would be that option which if removed will stop the further consequences. Applying this principle D is the root cause because had the management not meted out a disproportionate punishment, the current situation faced by the organization would not have risen. Even if the pastor flouted the norms, and the waitress violated the privacy, the public outcry would not have arisen unless the public perceived the punishment meted by the organization as unfair. It is not a crime to flout a norm; but the waitress might have committed an offence by flouting the rules of the organization. However, the punishment for such an alleged offence is what started the outcry. Hence, Option D is the right answer.

XAT 2017: LR DI - Question 2

Analyse the following caselet and answer the questions that follow:

A pastor had eaten at a restaurant with his troupe of ten and his family. It is a norm to tip the waiter and about 20% of a waiter’s salary comes from these tips. However, while paying the bill, the pastor crossed out the automatic 18% tip charged for parties of more than eight and wrote “I give God 10% why do you get 18%?” above his signature. The chagrined waitress at the restaurant posted a photo of this on the social media. She was subsequently fired for violating company’s policy on customer privacy. This would have been understandable if the restaurant had not posted just 2 weeks ago a customer receipt that was complimenting them. Social media and social activists came heavily upon the management’s ambivalent stand and the firing of the waitress. In response, the company posted a note on their social media page defending their actions. This quickly drew over 10,000 comments, mostly negative, to which the management started responding by posting the same note over and over again. There were also accusations of the company deleting negative comments and blocking users. The restaurant also experienced a sizable drop in their footfall.

The downward spiral continued for the restaurant as the management persisted in defending their actions and argued with those who criticised them. By the following week, the original post had generated over 18,000 negative comments.

Q. Which of the following is the best way forward for the restaurant at this juncture?

A.
Unconditionally restore the waitress to her former position and salary on the ground that she was never at fault in the first place.
B.
Apologise to and reinstate the waitress and ask her to apologize for her breach of customer privacy and post both the apologies on social media.
C.
Reinstate the waitress provided she apologises for her breach of customer privacy and post that apology on the restaurant's social media page.
D.
Reinstate the waitress if and only if she apologizes for her breach of customer privacy and posts that apology on her social media page.
E.
Recruit two waitresses at a higher wage but stick to the original decision of firing the waitress.

Detailed Solution for XAT 2017: LR DI - Question 2

Since waitress was punished in a disproportionate manner to the mistake she committed, hence, the organization should first apologize to the waitress and offer to re-instate her as early as possible. However, waitress is wrong to display customer details on her personal social media page. She should also apologise for this act of discretion. Hence, the organization should offer to reinstate and ask her to apologizefor her action, in the social media. Hence, B is the best answer.

XAT 2017: LR DI - Question 3

Analyse the following caselet and answer the questions that follow:

Vimla is the domestic help for Shreya and her neighbour Padma; both live in a posh gated community. Vimla not only cleans the house, but also cooks for both the families. Shreya treasures Vimla ever since she joined her family four years ago. Vimla joined Padma's household this year.

One evening Shreya trying to pay the pizza delivery was surprised to find a few five-hundred-rupee notes missing from her purse that she was sure were there earlier. She wants to ascertain if someone has stolen the money. On reflecting, the following facts crossed her mind:

1. In the last one year, Shreya had noticed cash missing on three occasions.

2. Shreya's husband also shared that a few notes were missing from his wallet, though he was not sure if they were stolen.

3. Her eldest son had been pestering Shreya for more pocket money for the last three weeks; in the last few days, he had stopped doing so.

4. In the last one year, Vimla had received six mails from her family asking for money.

5. Her eldest son's expenditure had gone up in the last few days.

Q. Which of the following combinations of the above statements would DECREASE the likelihood that Vimla has stolen the money?

A.
1 and 3
B.
1 and 4
C.
1 and 5
D.
2 and 4
E.
3 and 5

Detailed Solution for XAT 2017: LR DI - Question 3

If the money was stolen, then someone who had the need for money should have stolen it. Out of the options available the choices 1&4 and 2&4 will increase the probability that Vimla has stolen it and hence, B and D are wrong. Options 3&5, 1&3, and 1&5 will increase the probability that Shreya‘s son has stolen it. Out of the three options 3&5 would make the probability of stealing by son the highest, which would imply that the probability that Vimla has stolen it is the lowest. Hence, E is the right answer.

XAT 2017: LR DI - Question 4

Analyse the following caselet and answer the questions that follow:

Vimla is the domestic help for Shreya and her neighbour Padma; both live in a posh gated community. Vimla not only cleans the house, but also cooks for both the families. Shreya treasures Vimla ever since she joined her family four years ago. Vimla joined Padma's household this year.

Padma discovered some money missing from her purse. She suspects that Vimla has stolen it. She wants to prevent the stealing from happening again and is contemplating the following actions:

1. She should Iet it pass, since to err is human.

2. She should confront Vimla and tell her that she knows the truth and the act is unpardonable regardless of her past service and she is thinking of terminating her services.

3. She should tell Vimla that she is aware someone has stolen money from the house but is not sure who it is.

4. She should share with Vimla that neighbours think Vimla has stolen the money though she doesn't, but is interested in finding out the truth.

5. She should directly ask Vimla if she stole the money, promising her no punishment if she confesses.

Q. Arrange the following combinations of the above actions in the DECREASING order of appropriateness.

A.
1, 5, 4
B.
2, 4, 1
C.
2, 5, 4
D.
3, 5, 4
E.
5, 2, 4

Detailed Solution for XAT 2017: LR DI - Question 4

The objective is to prevent (P) further theft while being appropriate (A). Therefore, best option should be P:Yes and A:Yes Statement 1: (P-N, A-Y) Objective of prevention is not met in 1. Statement 2: (P-Y, A-N) Statement 3: (P-Y, A-Y) Message delivered to Vimla is same in statement 3 and 4, but 3 is more appropriate Statement 4: (P-Y, A-Y (somewhat)): Message delivered to Vimla is same in 3 and 4, but 3 is more appropriate, as in 4 Shreya is bringing in a third party (neighbours) when it is she who suspects. Statement 5: (PY, A-Y). This is more appropriate than 4 but less appropriate than 3 since compared to 4 where Shreya is placing the blame on her neighbours, in 5 Shreya owns it up, however in 3 Shreya is discussing the incident, while in 5 she is pointing a finger at Vimla purely on suspicion. Therefore, Option D is the correct answer.

XAT 2017: LR DI - Question 5

Analyse the following caselet and answer the question that follows:

Genius Consulting is a boutique consulting firm started by Shirish, Balram, Rahman and Xavier, four friends from a premier business school. They committed themselves to abide by two principles: a) not to indulge in anything unethical and b) share earnings equally. Genius Consulting could not get a significant project till the following year, when they managed a big one after Rahman's father referred their firm to his top management. Convinced of the team's talent following an impressive presentation, the top management awarded them the project even though six other referred teams made presentations.

The day following the presentation, they met to decide the way forward for the organization.

Q. Which of the following choices would be the most appropriate for Genius Consulting?

A.
As this project violates both their principles, Genius consulting should not take up the project.
B.
Due to the violation of the first principle Genius consulting should not take up this project.
C.
They should take up the project. Further, since Rahman had agreed to equal sharing, he is not entitled to finder's fee.
D.
They should take up the project and as the referral helped them survive, Rahman should be paid finder's fee.
E.
They should take up the project. But, in or order not to violate the principles, Rahman can be paid finder's fee this year and an equal amount be deducted from his compensation the next year.

Detailed Solution for XAT 2017: LR DI - Question 5

Since company is formed with a motto of ethics and equal compensation, it should not be disturbed. Compensation, should not change based on who gets the business because tomorrow someone else might get the business or getting business may be a role assigned to one member, while others play equally important but different role. It is not an unethical situation because the project was won on the basis of capability and not because of favour from Rahman‘s father. Hence, C becomes the best option as no one is favoured.

XAT 2017: LR DI - Question 6

Analyse the following caselet and answer the questions that follow:

Mrs Biswas was to retire in one year after serving in the construction department of the Gujarat government for more than thirty years. After retirement, she wanted to spend her retired life along with Mr Biswas, a retired school teacher in a small town in Kerala. They had two children, both studying in Bengaluru. The Biswas' wished to construct a house in Kerala with their life savings. The couple gathered information about owning a house in Kerala. They had four options:

1. Buy a fully furnished house from a big developer and furnish it.

2. Buy a semi-furnished house from a big developer and furnish it.

3. Get a local unregistered contractor to construct a house and furnish it.

4. Mr Biswas with inputs from the family could supervise the construction of a house back in Kerala by employing the best material, engineers, masons and labourers.

Q. Which option would ENSURE the best control of quality of construction for the Biswas'?

A.
The first option would ensure the best quality.
B.
The second option would ensure the best quality.
C.
The third option would ensure the best quality.
D.
The fourth option would ensure the best quality.
E.
Any of the options will equally ensure the best quality.

Detailed Solution for XAT 2017: LR DI - Question 6

In options A, B and C, the house owner lacks control over the quality of construction. However, in option D the owner can monitor discrepancies on an everyday basis and take corrective actions, if required, especially given Mrs. Biswas‘ professional experience. Option D is equivalent to continuous monitoring which is superior to one time monitoring in other options. Hence, D is the best answer.

XAT 2017: LR DI - Question 7

Analyse the following caselet and answer the questions that follow:

Mrs Biswas was to retire in one year after serving in the construction department of the Gujarat government for more than thirty years. After retirement, she wanted to spend her retired life along with Mr Biswas, a retired school teacher in a small town in Kerala. They had two children, both studying in Bengaluru. The Biswas' wished to construct a house in Kerala with their life savings. The couple gathered information about owning a house in Kerala. They had four options:

1. Buy a fully furnished house from a big developer and furnish it.

2. Buy a semi-furnished house from a big developer and furnish it.

3. Get a local unregistered contractor to construct a house and furnish it.

4. Mr Biswas with inputs from the family could supervise the construction of a house back in Kerala by employing the best material, engineers, masons and labourers.

Q. Which of the following additional information, IF TRUE, would improve the chances of the third option being preferred?

A.
Based on the current information, with no additional information, the third is the best option.
B.
Among local property holders, the contractor in the third option enjoys a good reputation.
C.
Big developers are less open to changes in design.
D.
Mr Biswas cannot stay back alone to supervise the construction.
E.
The Biswas' want to select the furniture on their own.

Detailed Solution for XAT 2017: LR DI - Question 7

Option C makes first and second options (in the caselet) less attractive, but does not make third option (in the caselet) as attractive as option B does. Option D makes first option (in the caselet) and second option (in the caselet) attractive but does not improve the chances of preferring the third option (in the caselet). Option E makes first option (in the caselet) less attractive and second option most attractive. Based on arguments presented in the previous question, it is clear that third option (in the caselet) was not the best. Hence, A is not the right answer. If the builder had good reputation among the local house owners, it means that the builder has been constructing houses to the satisfaction of the local house owners which probably would mean that the builder should be able to assure good quality. Hence, B is the answer.

XAT 2017: LR DI - Question 8

Analyse the following caselet and answer the questions that follow:

Mrs Biswas was to retire in one year after serving in the construction department of the Gujarat government for more than thirty years. After retirement, she wanted to spend her retired life along with Mr Biswas, a retired school teacher in a small town in Kerala. They had two children, both studying in Bengaluru. The Biswas' wished to construct a house in Kerala with their life savings. The couple gathered information about owning a house in Kerala. They had four options:

1. Buy a fully furnished house from a big developer and furnish it.

2. Buy a semi-furnished house from a big developer and furnish it.

3. Get a local unregistered contractor to construct a house and furnish it.

4. Mr Biswas with inputs from the family could supervise the construction of a house back in Kerala by employing the best material, engineers, masons and labourers.

The Kerala Government recently announced a policy: In case of major quality infringement, the builder will pay a penalty of 50% of the price of the house in addition to the price of the house, to the client within a year of notice.

Q. Rank in ASCENDING order the options that would ensure "control of quality".

A.
1,2,3,4
B.
2,3,4,1
C.
3,1,2,4
D.
4,3,1,2
E.
4,1,2,3

Detailed Solution for XAT 2017: LR DI - Question 8

If builders are forced to pay penalty for bad quality then they are more likely to deliver good quality, though it would be difficult to force the penalty on unregistered builders. The chances of unregistered builder improving quality because of penalty are lower, as the builder can, more easily, escape the clutches of law. Hence, the right set of option should start with 3. It gives us C as the right answer.

XAT 2017: LR DI - Question 9

Analyse the following caselet and answer the questions 33-35 that follow:

A University coach was asked to select teams in three sports: Shooting, Cricket (batsmen only) and "Snakes & Ladder". The honest and keen observer head boy of the school informed the coach that he had observed 100 students playing the three games - shooting, cricket and "Snakes & Ladder". In shooting, all students were given 100 chances to hit a target. In cricket, a batsman faced a maximum of 100 balls, provided he DID NOT GET OUT. In "Snakes & Ladder", every student could play 100 matches, one each with the other students and one against a computer. In shooting, a player got one point for hitting the target and zero point for missing the target. In cricket, a batsman got one point for hitting the ball and zero point for missing it. In "Snakes & Ladder", a person got one point for winning the game and zero for losing. To the coach's utter surprise, the distribution of points across all three games was the same. It was as follows:

The coach has to select a team of eleven in each sport.

Q. Which of the following options is the best way to select the "Snakes & Ladder" team?

A.
The coach must select all students between 80 and 99.
B.
The coach must select both the students between 90 and 99.
C.
The coach must select at least 6 students between 40 and 59.
D.
The coach must not select students between 0 and 9.
E.
The coach can ignore the data in the table and randomly pick any 11 players.

Detailed Solution for XAT 2017: LR DI - Question 9

In Snakes and Ladder, the player cannot exhibit any skill and therefore cannot determine the outcome, which is random if the dice is fair. The past data in the table is not relevant for selection. Hence, the best selection process should give equal opportunity to everyone and therefore, Option E is the right answer.

XAT 2017: LR DI - Question 10

Analyse the following caselet and answer the questions 33-35 that follow:

A University coach was asked to select teams in three sports: Shooting, Cricket (batsmen only) and "Snakes & Ladder". The honest and keen observer head boy of the school informed the coach that he had observed 100 students playing the three games - shooting, cricket and "Snakes & Ladder". In shooting, all students were given 100 chances to hit a target. In cricket, a batsman faced a maximum of 100 balls, provided he DID NOT GET OUT. In "Snakes & Ladder", every student could play 100 matches, one each with the other students and one against a computer. In shooting, a player got one point for hitting the target and zero point for missing the target. In cricket, a batsman got one point for hitting the ball and zero point for missing it. In "Snakes & Ladder", a person got one point for winning the game and zero for losing. To the coach's utter surprise, the distribution of points across all three games was the same. It was as follows:

The coach has to select a team of eleven in each sport.

Q. Which of the following options is the best way of selecting the Shooting team?

A.
The coach should select all students in 80-99 ranges.
B.
The coach should select both the students in 90-99 range; others can be from any of the other ranges.
C.
The coach should select at least 6 students between 40 and 49.
D.
The coach should not select students between 40 and 89.
E.
The coach can pick randomly any 11 players from any of the ranges.

Detailed Solution for XAT 2017: LR DI - Question 10

In hundred shooting trials, it is highly unlikely that any student would get a high score unless he/she is really good at shooting. The trials give us enough information to choose those who have scored the highest. Therefore, option A is correct.

XAT 2017: LR DI - Question 11

Analyse the following caselet and answer the questions 33-35 that follow:

A University coach was asked to select teams in three sports: Shooting, Cricket (batsmen only) and "Snakes & Ladder". The honest and keen observer head boy of the school informed the coach that he had observed 100 students playing the three games - shooting, cricket and "Snakes & Ladder". In shooting, all students were given 100 chances to hit a target. In cricket, a batsman faced a maximum of 100 balls, provided he DID NOT GET OUT. In "Snakes & Ladder", every student could play 100 matches, one each with the other students and one against a computer. In shooting, a player got one point for hitting the target and zero point for missing the target. In cricket, a batsman got one point for hitting the ball and zero point for missing it. In "Snakes & Ladder", a person got one point for winning the game and zero for losing. To the coach's utter surprise, the distribution of points across all three games was the same. It was as follows:

The coach has to select a team of eleven in each sport.

Q. Which of the following options is the correct statement for picking up the cricket team?

A.
The coach should never select the player in the range of 0-9 points.
B.
The coach should never select players from the range of 50-59.
C.
The coach should never select players from the range of 70-79.
D.
The coach should definitely select players only from the range of 80-99.
E.
None of the above.

Detailed Solution for XAT 2017: LR DI - Question 11

In the game of cricket, a player has to stop batting when he gets out. Therefore, there is no guarantee that even the best of batsman will play out all 100 balls. On the contrary, even the worst batsman can play hundred balls, though chances are low. Hence, there is a possibility that best batsman can get out after playing 5 balls and worst batsman can play more balls than him. Hence, the coach can never be sure of rejecting a person with low score or select a batsman, based on the above data. Hence, options A, B, C, and D all are wrong. Best answer is Option E.

XAT 2017: LR DI - Question 12

Analyse the following caselet and answer the questions that follow:

A college campus with a population of around 2,000 of whom 200 were children, 1,200 people between 15 and 45 years, 500 people between 45 and 65 and around 100 people more than 65 years of age. The campus has two big gates opening out to the city. There are 400 cars and 500 motorbikes inside the campus. The residents relied on these vehicles to visit the city located 10 kilometres away.

Now, with land within the campus becoming scarce, the chief administrator (CA) found the growing demand for parking lot difficult to handle. The faculty, staff and students wanted increased parking space. In the past six years, the parking requirement on campus had doubled. The CA found it inappropriate to construct parking lots from the students' fee, even though those with vehicles may not complain about it.

Besides creating parking problems, the CA felt that these vehicles added to the pollution and made residents less responsible towards each other. The risk to the children and the elderly because of over-speeding was menacing. Therefore, the CA wanted to reduce the number of vehicles in the campus. Many faculty members, students and staff members, however, felt that demand for more parking space was natural as vehicles were required to go to the market, railway station, airport, and inter-state bus terminal all located in the city. They also told the CA that the elderly, sick and the toddlers relied only on these vehicles.

After listening to all stakeholders, the CA wanted to solve these problems while ensuring the campus remained responsible and green.

Q. Which of the following actions would best satisfy all the stakeholders within the campus?

A.
Levy extra fee on students to construct additional parking lots inside the campus. Students should pay for up-keep of the campus.
B.
Let all vehicles be parked in a college-managed space outside the campus while two battery operated vehicles handle exigencies inside the campus.
C.
Bring all stakeholders to the discussion table.
D.
To reduce carbon footprints, only pooled vehicles should be allowed to operate inside the campus.
E.
Charge significant fee from any vehicle entering or leaving the campus.

Detailed Solution for XAT 2017: LR DI - Question 12

Option A is not possible because it is unfair to the students as mentioned in the case. Option C is not a solution as it talks only about discussions and not a decision. It can be a good initial point but not a concrete way to solve the problem. Option D is not the best solution as it does not address the concern of parking lot and emergencies. Further D is an inferior option in comparison to Option B even with respect to pollution control. Option E does not solve the problem as it does not address concerns of parking lot. Further, Option E is inferior in comparison to Option B with respect to pollution control. Option B is the best solution as it addresses parking as well as other issues including those related to environment.

XAT 2017: LR DI - Question 13

Analyse the following caselet and answer the questions that follow:

A college campus with a population of around 2,000 of whom 200 were children, 1,200 people between 15 and 45 years, 500 people between 45 and 65 and around 100 people more than 65 years of age. The campus has two big gates opening out to the city. There are 400 cars and 500 motorbikes inside the campus. The residents relied on these vehicles to visit the city located 10 kilometres away.

Now, with land within the campus becoming scarce, the chief administrator (CA) found the growing demand for parking lot difficult to handle. The faculty, staff and students wanted increased parking space. In the past six years, the parking requirement on campus had doubled. The CA found it inappropriate to construct parking lots from the students' fee, even though those with vehicles may not complain about it.

Besides creating parking problems, the CA felt that these vehicles added to the pollution and made residents less responsible towards each other. The risk to the children and the elderly because of over-speeding was menacing. Therefore, the CA wanted to reduce the number of vehicles in the campus. Many faculty members, students and staff members, however, felt that demand for more parking space was natural as vehicles were required to go to the market, railway station, airport, and inter-state bus terminal all located in the city. They also told the CA that the elderly, sick and the toddlers relied only on these vehicles.

After listening to all stakeholders, the CA wanted to solve these problems while ensuring the campus remained responsible and green.

Q. Which of the following would be the best option to increase revenue, decrease carbon footprint and still satisfy all the stakeholders in the campus?

A.
Make substantial collection from vehicles entering or leaving campus and construct a parking lot outside the campus.
B.
Levy extra fee on the students and build extra parking lots inside the campus.
C.
Bring all stakeholders to table and let them build consensus.
D.
To reduce the carbon footprint, only pooled vehicles be permitted on campus.
E.
Let all vehicles be parked in a managed space outside the campus while battery operated vehicles parked at the two gates can be used inside the campus.

Detailed Solution for XAT 2017: LR DI - Question 13

Option C is not correct as it offers a path but does not offer a solution. Option D is wrong because it does not provide the administration with any increase in revenue. Option E can reduce carbon footprints and satisfy stakeholders but there is no scope of increase in revenues. Option B is unfair as one stakeholder pays for deeds of others and it does not solve carbon footprints. Option A increases satisfaction for all stakeholders; it will also increase revenue and can reduce carbon footprints by making it costly to drive vehicles inside campus. So, Option A is the correct answer.

XAT 2017: LR DI - Question 14

Analyse the following caselet and answer the questions that follow:

Girirajan an unemployed youngster from Kumbakonam, Tamilnadu, visited Singapore where his school friend worked as software engineer. In Singapore, Girirajan realized that there were a lot of Tamils in "Little India" area. He soon assessed that there were very few restaurants serving authentic Tamil food and decided to set-up a restaurant "Giri's" in "Little India” serving authentic Tamil food in traditional banana leaf. Customers loved the food. Very soon word spread about the good quality food served in the traditional way. Girirajan expanded operation recruiting 10 employees, all Tamils.

Six months later, Girirajan realized that a lot of Kannadiga and Telugu customers started visiting the restaurant along with their Tamil friends. One day, a Kannadiga customer looking for Devangere Benne Dosa suggested that it may not be a bad idea for Girirajan to serve Karnataka and Andhra cuisines along with Tamil.

With time, the popularity of the restaurant kept soaring. As a result, a lot of Malays, Indonesians and Chinese started visiting the restaurant. His software engineer friend advised to cater to customers of all nationalities, Despite his desire to go grand, Girirajan realized he did not have enough money to get extra space anywhere in Singapore and banks were also reluctant to lend.

One day, while assessing the business, he realized that the restaurant had 90% occupancy rate during peak hours and 40% during the non-peak hours. Both figures were increasing with time.

Q. Which of the following options would be most suitable for the growth of the business?

A.
Include Karnataka and Andhra cuisines in the menu.
B.
Include Indonesian and Chinese cuisines in the menu.
C.
Keep the focus on Tamil food only with an increased focus on quality improvement.
D.
Expand to include either Karnataka and Andhra cuisines or Indonesian and Chinese cuisines.
E.
Include Karnataka and Andhra cuisines as well as Indonesian and Chinese.

Detailed Solution for XAT 2017: LR DI - Question 14

The business has already reached 90% utilization (and this is improving further) during peak hours, in addition he has space constraints. Making substantial changes will incur lot of costs but opportunities for benefits are limited because of existing 90% utilization. Further, selling dishes of other regions might affect current focus on authentic Tamil food (and this was the business opportunity according to the passage). – . Moreover, there is no surety that he will do well in other cuisines because lack of experience/expertise. Hence, Giri is better off to focus on authentic and quality Tamil cuisine which is the reason for his success. So, option C is the correct answer.

XAT 2017: LR DI - Question 15

Analyse the following caselet and answer the questions that follow:

Girirajan an unemployed youngster from Kumbakonam, Tamilnadu, visited Singapore where his school friend worked as software engineer. In Singapore, Girirajan realized that there were a lot of Tamils in "Little India" area. He soon assessed that there were very few restaurants serving authentic Tamil food and decided to set-up a restaurant "Giri's" in "Little India” serving authentic Tamil food in traditional banana leaf. Customers loved the food. Very soon word spread about the good quality food served in the traditional way. Girirajan expanded operation recruiting 10 employees, all Tamils.

Six months later, Girirajan realized that a lot of Kannadiga and Telugu customers started visiting the restaurant along with their Tamil friends. One day, a Kannadiga customer looking for Devangere Benne Dosa suggested that it may not be a bad idea for Girirajan to serve Karnataka and Andhra cuisines along with Tamil.

With time, the popularity of the restaurant kept soaring. As a result, a lot of Malays, Indonesians and Chinese started visiting the restaurant. His software engineer friend advised to cater to customers of all nationalities, Despite his desire to go grand, Girirajan realized he did not have enough money to get extra space anywhere in Singapore and banks were also reluctant to lend.

One day, while assessing the business, he realized that the restaurant had 90% occupancy rate during peak hours and 40% during the non-peak hours. Both figures were increasing with time.

Girirajan started analysing his quarterly customer data to assess growth opportunities. He discovered that 20 % of his customers are Kannadigas and many of them were requesting for a few Karnataka dishes. He was not sure if it was a good idea to serve Karnataka food. He wanted to experiment before taking the final call.

Q. Which of the following options will be worth experimenting in the next fortnight?

A.
Introduce a Karnataka food day every week to please the Kannadiga customers.
B.
Recruit a few Kannadiga waiters to interact with Kannadiga customers.
C.
Rename a few Tamil dishes as Karnataka dishes.
D.
Serve Karnataka dishes as and when requested by customers without the menu displaying these dishes.
E.
Add a few Karnataka dishes to the cuisine and display these in a separate menu.

Detailed Solution for XAT 2017: LR DI - Question 15

The objective is to experiment with a few Karnataka dishes. Customer should be aware of it, but this (experimentation) should not be added to the mainstream business as of now, therefore, should not be part of the main menu. The only option that satisfies both the criteria is E and therefore, Option E is the right answer.

XAT 2017: LR DI - Question 16

Analyse the following caselet and answer the questions that follow:

Girirajan an unemployed youngster from Kumbakonam, Tamilnadu, visited Singapore where his school friend worked as software engineer. In Singapore, Girirajan realized that there were a lot of Tamils in "Little India" area. He soon assessed that there were very few restaurants serving authentic Tamil food and decided to set-up a restaurant "Giri's" in "Little India” serving authentic Tamil food in traditional banana leaf. Customers loved the food. Very soon word spread about the good quality food served in the traditional way. Girirajan expanded operation recruiting 10 employees, all Tamils.

Six months later, Girirajan realized that a lot of Kannadiga and Telugu customers started visiting the restaurant along with their Tamil friends. One day, a Kannadiga customer looking for Devangere Benne Dosa suggested that it may not be a bad idea for Girirajan to serve Karnataka and Andhra cuisines along with Tamil.

With time, the popularity of the restaurant kept soaring. As a result, a lot of Malays, Indonesians and Chinese started visiting the restaurant. His software engineer friend advised to cater to customers of all nationalities, Despite his desire to go grand, Girirajan realized he did not have enough money to get extra space anywhere in Singapore and banks were also reluctant to lend.

One day, while assessing the business, he realized that the restaurant had 90% occupancy rate during peak hours and 40% during the non-peak hours. Both figures were increasing with time.

Girirajan experimented with Karnataka food for a fortnight. He collected sales data for Karnataka food along with the trend of overall sales for the last seven days.

Q. Which of the following datasets, IF TRUE, will give Girirajan greater confidence to continue serving Karnataka food? (Figures below represent Karnataka food sales as percentage of total sales.)

A.
14, 15, 16, 17, 18, 19, 20, with total sales trend increasing by 0.4%.
B.
20, 20, 20, 20, 20, 20, 20, with total sales trend increasing by 0.4%.
C.
50, 47, 44, 40, 47, 45, 40, with total sales trend remaining same.
D.
45, 44, 43, 42, 41, 40, 39, with total sales trend remaining same.
E.
20, 50, 10, 45, 43, 13, 36, with total sales trend coming down.

Detailed Solution for XAT 2017: LR DI - Question 16

In Option A, the trend for sales for Karnataka dishes increasing along with the total sales increasing and hence, is the right answer.

XAT 2017: LR DI - Question 17

Analyse the following caselet and answer the questions that follow:

Shyam prepares and sells piping hot puri and sabji (gravy) from 7:00 am to 9:00 am (both inclusive) through a stall at XLRI campus. Presently, he has just a single oven, which can do only one job at a time. It takes 30 minutes to cook one handi (a large bowl) of sabji, sufficient for 12 customers. It takes him 10 minutes to prepare 2 plates of puri at a time. While the cost of a plate of puri-sabji is ₹10, the price is ₹25. Puri stays hot for only 5 minutes after preparation, while sabji stays hot for 30 minutes only. It takes 10 minutes to reheat the sabji which stays hot for another 30 minutes. If he brings a handi of hot sabji from home, the transport would cost him ₹50. It can also stay hot for 30 minutes excluding the transportation time. Currently, every 20 minutes five plates are ordered. All unsold quantities are distributed at cost after 9:30 am.

Q. Find the maximum number of plates of puri-sabjiShyam can sell in the first hour of business?

A.
6
B.
8
C.
10
D.
12
E.
15

Detailed Solution for XAT 2017: LR DI - Question 17

Answer is C (10), as can be seen from the table below

XAT 2017: LR DI - Question 18

Analyse the following caselet and answer the questions that follow:

Shyam prepares and sells piping hot puri and sabji (gravy) from 7:00 am to 9:00 am (both inclusive) through a stall at XLRI campus. Presently, he has just a single oven, which can do only one job at a time. It takes 30 minutes to cook one handi (a large bowl) of sabji, sufficient for 12 customers. It takes him 10 minutes to prepare 2 plates of puri at a time. While the cost of a plate of puri-sabji is ₹10, the price is ₹25. Puri stays hot for only 5 minutes after preparation, while sabji stays hot for 30 minutes only. It takes 10 minutes to reheat the sabji which stays hot for another 30 minutes. If he brings a handi of hot sabji from home, the transport would cost him ₹50. It can also stay hot for 30 minutes excluding the transportation time. Currently, every 20 minutes five plates are ordered. All unsold quantities are distributed at cost after 9:30 am.

Shyam's puri-sabji became famous. Now he gets 5 orders per 10 minutes and has invested in an additional oven. As he is working alone on both the ovens simultaneously, now in any one oven it takes him 45 minutes to cook one handi of sabji, 15 minutes for 2 plates of puri and 15 minutes to reheat the sabji. He can bring only one handi from home.

Q. What will be his maximum daily profit?

A.
₹250
B.
₹280
C.
₹300
D.
₹330
E.
₹360

Detailed Solution for XAT 2017: LR DI - Question 18

Answer is B (Rs. 280), can be seen.

XAT 2017: LR DI - Question 19

Analyse the following caselet and answer the questions that follow:

Shyam prepares and sells piping hot puri and sabji (gravy) from 7:00 am to 9:00 am (both inclusive) through a stall at XLRI campus. Presently, he has just a single oven, which can do only one job at a time. It takes 30 minutes to cook one handi (a large bowl) of sabji, sufficient for 12 customers. It takes him 10 minutes to prepare 2 plates of puri at a time. While the cost of a plate of puri-sabji is ₹10, the price is ₹25. Puri stays hot for only 5 minutes after preparation, while sabji stays hot for 30 minutes only. It takes 10 minutes to reheat the sabji which stays hot for another 30 minutes. If he brings a handi of hot sabji from home, the transport would cost him ₹50. It can also stay hot for 30 minutes excluding the transportation time. Currently, every 20 minutes five plates are ordered. All unsold quantities are distributed at cost after 9:30 am.

Shyam’s stall was becoming popular by the day. Now he gets 5 customers every 10 minutes. After buying a second oven, he employed a helping hand, Aman at 100 for two hours. Aman can cook one handi of sabji in 20 minutes or can prepare 3 plates of purl in 10 minutes. Reheat time for sabji is 10 minutes. None of them can work on both the ovens simultaneously.

Q. Which of the following options will help Shyam maximize his daily profit, if he does NOT bring sabji from home?

A.
Shyam should dismiss Aman because his wages are more than the benefits he brings.
B.
Shyam will prepare only puri and Aman will prepare only sabji.
C.
Shyam will prepare only sabji and Aman will prepare only puri.
D.
Shyam and Aman will prepare both purl and sabji.
E.
Options B, C and D will yield the same profit.

Detailed Solution for XAT 2017: LR DI - Question 19

Option D is the best option as it gives highest profit. Even if we subtract wages of Aman (100), option D remains the better.

XAT 2017: LR DI - Question 20

Analyse the following caselet and answer the question that follows:

As a newly started organization in the IT sector, Saksha IT is a fast growing 400 employee organization. Its head, Saksha Kumar believes in building an organization driven by humility.

Q. Which of the following policies would best help him achieve that?

A.
Employees shall, in their annual evaluation form, be asked to acknowledge three of their shortcomings, overcoming which will make them better.
B.
Employees shall be asked to share with their peers three shortcomings they had noticed about their peers.
C.
The immediate superiors would suggest three shortcomings their subordinates have to work on in a given period.
D.
Everyone beginning with Saksha, shall be asked to share three of their weaknesses, in a public forum.
E.
Employees shall be asked to overcome three shortcomings in the following year. improvement, if noticed would attract rewards.

Detailed Solution for XAT 2017: LR DI - Question 20

Humility is the quality of not being proud of being perfect as you are aware of your limitations. Therefore, among the options, the option that focuses on awareness of the self with respect to limitations should be in the consideration set for the correct answer. However, the focus on awareness of self is not necessarily linked to “improvement” or “overcoming” the limitations. Moreover, the culture of humility should not be confused with the performance measurement or rewards and compensation. Among the options, Option D focuses on making one aware of one self without any link with rewards or performance and hence, Option D is the right answer.

XAT 2017: LR DI - Question 21

Analyse the following caselet and answer the question that follows:

Principal Maheswari of BINK School of Management is facing a problem that calls for quick action. She received an anonymous mail one day, possibly from one of the students, complaining about outdated syllabi, mediocre teachers and poor choice of courses on offer.

Q. Which of the following is the best course of action available to the Principal?

A.
She should invite students to discuss any problem openly, one on one or in small groups, promise to act on them but firmly condemn the culture of anonymous mails.
B.
She should update the students about the efforts the institute is taking in sprucing up the syllabi, hiring talented faculty etc., but make no reference to the letter.
C.
She should convene a meeting of the faculty at the earliest and get them to work on updating the syllabi and also arrange a faculty development program but keep mum about the letter.
D.
She should convene a meeting of the faculty and talk about the letter as a symptom of a deeper malaise, ask them to update the syllabi and also organise a faculty development program.
E.
She should ignore the letter and not think about it at all.

Detailed Solution for XAT 2017: LR DI - Question 21

The principal has received an anonymous mail which could be a result of an underlying concern, which might be genuine or not, among the student(s). So, she should focus on the underlying concern, but this way of communicating anonymously is something that should be strongly discouraged. Since the underlying concern may or may not be genuine, she should openly invite students for discussions but not discuss the mail as such. Hence, Option A is the right answer because principal is addressing: a) the issue ofanonymous email and b) whether the content of the email is a concern.

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