NMAT Mock Test - 5


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QUESTION: 1

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience. Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.

Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.

The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact finding authorities who used legitimate decision making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.

The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.

The hypothesis mentioned in the passage tests at least one of the following ideas.

Solution: The answer to this question can be found from the lines: Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience.

Observe how the 'do not overwhelm' has been simply transformed into 'underwhelm'; after all this is what happens when you use two negatives.

QUESTION: 2

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience. Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.

Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.

The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact finding authorities who used legitimate decision making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.

The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.

There is only one term in the left column which matches with the options given in the second column. Identify the correct pair from the following table:

Solution: Link-up of term a with 1 and 4 can be derived from the following line: First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter.

QUESTION: 3

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience.

Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.

Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.

The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact finding authorities who used legitimate decision making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.

The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.

For summarizing the passage, which of the following is most appropriate:

Solution: Option 1 is rejected as the passage is not about legal authorities.

Option 3 is rejected as managerial practices are not mentioned, rather general behaviour is discussed.

Option 4 is rejected as happiness is not the subject of the passage. This leaves us with only one option, which is also the summary of the passage.

QUESTION: 4

People are continually enticed by such "hot" performance, even if it lasts for brief periods. Because of this susceptibility, brokers or analysts who have had one or two stocks move up sharply, or technicians who call one turn correctly, are believed to have established a credible record and can readily find market followings. Likewise, an advisory service that is right for a brief time can beat its drums loudly. Elaine Garzarelli gained near immortality when she purportedly "called" the 1987 crash. Although, as the market strategist for Shearson Lehman, her forecast was never published in a research report, nor indeed communicated to its clients, she still received widespread recognition and publicity for this call, which was made in a short TV interview on CNBC. Still, her remark on CNBC that the Dow could drop sharply from its then 5300 level rocked an already nervous market on July 23, 1996. What had been a 40-point gain for the Dow turned into a 40-point loss, a good deal of which was attributed to her comments.

The truth is, market-letter writers have been wrong in their judgments far more often than they would like to remember. However, advisors understand that the public considers short-term results meaningful when they are, more often than not, simply chance. Those in the public eye usually gain large numbers of new subscribers for being right by random luck. Which brings us to another important probability error that falls under the broad rubric of representativeness. Amos Tversky and Daniel Kahneman call this one the "law of small numbers.". The statistically valid "law of large numbers" states that large samples will usually be highly representative of the population from which they are drawn; for example, public opinion polls are fairly accurate because they draw on large and representative groups. The smaller the sample used, however (or the shorter the record), the more likely the findings are chance rather than meaningful. Yet the Tversky and Kahneman study showed that typical psychological or educational experimenters gamble their research theories on samples so small that the results have a very high probability of being chance. This is the same as gambling on the single good call of an advisor. The psychologists and educators are far too confident in the significance of results based on a few observations or a short period of time, even though they are trained in statistical techniques and are aware of the dangers.

Note how readily people over generalize the meaning of a small number of supporting facts. Limited statistical evidence seems to satisfy our intuition no matter how inadequate the depiction of reality. Sometimes the evidence we accept runs to the absurd. A good example of the major overemphasis on small numbers is the almost blind faith investors place in governmental economic releases on employment, industrial production, the consumer price index, the money supply, the leading economic indicators, etc. These statistics frequently trigger major stock- and bond-market reactions, particularly if the news is bad. Flash statistics, more times than not, are near worthless. Initial economic and Fed figures are revised significantly for weeks or months after their release, as new and "better" information flows in. Thus, an increase in the money supply can turn into a decrease, or a large drop in the leading indicators can change to a moderate increase. These revisions occur with such regularity you would think that investors, particularly pros, would treat them with the skepticism they deserve. Alas, the real world refuses to follow the textbooks. Experience notwithstanding, investors treat as gospel all authoritative-sounding releases that they think pinpoint the development of important trends. An example of how instant news threw investors into a tailspin occurred in July of 1996. Preliminary statistics indicated the economy was beginning to gain steam. The flash figures showed that GDP (gross domestic product) would rise at a 3% rate in the next several quarters, a rate higher than expected. Many people, convinced by these statistics that rising interest rates were imminent, bailed out of the stock market that month. To the end of that year, the GDP growth figures had been revised down significantly (unofficially, a minimum of a dozen times, and officially at least twice). The market rocketed ahead to new highs to August l997, but a lot of investors had retreated to the sidelines on the preliminary bad news. The advice of a world champion chess player when asked how to avoid making a bad move. His answer: "Sit on your hands . But professional investors don't sit on their hands; they dance on tiptoe, ready to flit after the least particle of information as if it were a strongly documented trend. The law of small numbers, in such cases, results in decisions sometimes bordering on the inane. Tversky and Kahneman's findings, which have been repeatedly confirmed, are particularly important to our understanding of some stock market errors and lead to another rule that investors should follow.

Which statement does not reflect the true essence of the passage?

I. Tversky and Kahneman understood that small representative groups bias the research theories to generalize results that can be categorized as meaningful results and people simplify the real impact of passable portrayals of reality by a small number of supporting facts.

II. Governmental economic releases on macroeconomic indicators fetch blind faith from investors who appropriately discount these announcements which are ideally reflected in the stock and bond market prices.

III. Investors take into consideration myopic gain and make it a meaningful investment choice and fail to see it as a chance of occurrence.

IV. Irrational overreaction to key regulators expressions is the same as intuitive statistician stumbling disastrously when unable to sustain spectacular performance.

Solution: In the given case, statement II is incorrect. Investors do not discount these announcements; rather they take them too seriously and make unwise decisions. Since only one option has II in it, therefore the correct answer is option 3. This question is hard to solve if you look at every detail but it is simplified if we use this shortcut.

QUESTION: 5

People are continually enticed by such "hot" performance, even if it lasts for brief periods. Because of this susceptibility, brokers or analysts who have had one or two stocks move up sharply, or technicians who call one turn correctly, are believed to have established a credible record and can readily find market followings. Likewise, an advisory service that is right for a brief time can beat its drums loudly. Elaine Garzarelli gained near immortality when she purportedly "called" the 1987 crash. Although, as the market strategist for Shearson Lehman, her forecast was never published in a research report, nor indeed communicated to its clients, she still received widespread recognition and publicity for this call, which was made in a short TV interview on CNBC. Still, her remark on CNBC that the Dow could drop sharply from its then 5300 level rocked an already nervous market on July 23, 1996. What had been a 40-point gain for the Dow turned into a 40-point loss, a good deal of which was attributed to her comments.

The truth is, market-letter writers have been wrong in their judgments far more often than they would like to remember. However, advisors understand that the public considers short-term results meaningful when they are, more often than not, simply chance. Those in the public eye usually gain large numbers of new subscribers for being right by random luck. Which brings us to another important probability error that falls under the broad rubric of representativeness. Amos Tversky and Daniel Kahneman call this one the "law of small numbers.". The statistically valid "law of large numbers" states that large samples will usually be highly representative of the population from which they are drawn; for example, public opinion polls are fairly accurate because they draw on large and representative groups. The smaller the sample used, however (or the shorter the record), the more likely the findings are chance rather than meaningful. Yet the Tversky and Kahneman study showed that typical psychological or educational experimenters gamble their research theories on samples so small that the results have a very high probability of being chance. This is the same as gambling on the single good call of an advisor. The psychologists and educators are far too confident in the significance of results based on a few observations or a short period of time, even though they are trained in statistical techniques and are aware of the dangers.

Note how readily people over generalize the meaning of a small number of supporting facts. Limited statistical evidence seems to satisfy our intuition no matter how inadequate the depiction of reality. Sometimes the evidence we accept runs to the absurd. A good example of the major overemphasis on small numbers is the almost blind faith investors place in governmental economic releases on employment, industrial production, the consumer price index, the money supply, the leading economic indicators, etc. These statistics frequently trigger major stock- and bond-market reactions, particularly if the news is bad. Flash statistics, more times than not, are near worthless. Initial economic and Fed figures are revised significantly for weeks or months after their release, as new and "better" information flows in. Thus, an increase in the money supply can turn into a decrease, or a large drop in the leading indicators can change to a moderate increase. These revisions occur with such regularity you would think that investors, particularly pros, would treat them with the skepticism they deserve. Alas, the real world refuses to follow the textbooks. Experience notwithstanding, investors treat as gospel all authoritative-sounding releases that they think pinpoint the development of important trends. An example of how instant news threw investors into a tailspin occurred in July of 1996. Preliminary statistics indicated the economy was beginning to gain steam. The flash figures showed that GDP (gross domestic product) would rise at a 3% rate in the next several quarters, a rate higher than expected. Many people, convinced by these statistics that rising interest rates were imminent, bailed out of the stock market that month. To the end of that year, the GDP growth figures had been revised down significantly (unofficially, a minimum of a dozen times, and officially at least twice). The market rocketed ahead to new highs to August l997, but a lot of investors had retreated to the sidelines on the preliminary bad news. The advice of a world champion chess player when asked how to avoid making a bad move. His answer: "Sit on your hands . But professional investors don't sit on their hands; they dance on tiptoe, ready to flit after the least particle of information as if it were a strongly documented trend. The law of small numbers, in such cases, results in decisions sometimes bordering on the inane. Tversky and Kahneman's findings, which have been repeatedly confirmed, are particularly important to our understanding of some stock market errors and lead to another rule that investors should follow.

The author of the passage suggests the anomaly that leads to systematic errors in predicting the future. Which of the following statements does not best describe the anomaly as suggested in the passage above?

I. The psychological pressures account for the anomalies just like soothsayers warning about the doomsday and natural disasters and market crashes.

II. Contrary to several economic and financial theories investors are not good intuitive statisticians, especially under difficult conditions and are unable to calculate the odds properly when making investments choices.

III. Investors are swamped with information and they react to this avalanche of data by adopting shortcuts or rules of thumb rather than formally calculating odds of a given outcome.

IV. The distortions produced by subjectively calculated probabilities are large, systematic and difficult to eliminate even when investors are fully aware of them.

Solution: Statement II: The passage does not state that investors are not good intuitive statisticians' rather it states that investors choose to neglect statistics and go with intuition instead. Refer to these lines: The psychologists and educators are far too confident in the significance of results based on a few observations or a short period of time, even though they are trained in statistical techniques and are aware of the dangers.

Statement IV: Refer to the lines: Alas, the real world refuses to follow the textbooks. Experience notwithstanding, investors treat as gospel all authoritative-sounding releases that they think pinpoint the development of important trends.

These showcase the distortions by subjectively calculated probabilities can be eliminated but investors choose not to do so because of their instincts; it is not that they are difficult to eliminate, we simply choose not to act this way.

QUESTION: 6

People are continually enticed by such "hot" performance, even if it lasts for brief periods. Because of this susceptibility, brokers or analysts who have had one or two stocks move up sharply, or technicians who call one turn correctly, are believed to have established a credible record and can readily find market followings. Likewise, an advisory service that is right for a brief time can beat its drums loudly. Elaine Garzarelli gained near immortality when she purportedly "called" the 1987 crash. Although, as the market strategist for Shearson Lehman, her forecast was never published in a research report, nor indeed communicated to its clients, she still received widespread recognition and publicity for this call, which was made in a short TV interview on CNBC. Still, her remark on CNBC that the Dow could drop sharply from its then 5300 level rocked an already nervous market on July 23, 1996. What had been a 40-point gain for the Dow turned into a 40-point loss, a good deal of which was attributed to her comments.

The truth is, market-letter writers have been wrong in their judgments far more often than they would like to remember. However, advisors understand that the public considers short-term results meaningful when they are, more often than not, simply chance. Those in the public eye usually gain large numbers of new subscribers for being right by random luck. Which brings us to another important probability error that falls under the broad rubric of representativeness. Amos Tversky and Daniel Kahneman call this one the "law of small numbers.". The statistically valid "law of large numbers" states that large samples will usually be highly representative of the population from which they are drawn; for example, public opinion polls are fairly accurate because they draw on large and representative groups. The smaller the sample used, however (or the shorter the record), the more likely the findings are chance rather than meaningful. Yet the Tversky and Kahneman study showed that typical psychological or educational experimenters gamble their research theories on samples so small that the results have a very high probability of being chance. This is the same as gambling on the single good call of an advisor. The psychologists and educators are far too confident in the significance of results based on a few observations or a short period of time, even though they are trained in statistical techniques and are aware of the dangers.

Note how readily people over generalize the meaning of a small number of supporting facts. Limited statistical evidence seems to satisfy our intuition no matter how inadequate the depiction of reality. Sometimes the evidence we accept runs to the absurd. A good example of the major overemphasis on small numbers is the almost blind faith investors place in governmental economic releases on employment, industrial production, the consumer price index, the money supply, the leading economic indicators, etc. These statistics frequently trigger major stock- and bond-market reactions, particularly if the news is bad. Flash statistics, more times than not, are near worthless. Initial economic and Fed figures are revised significantly for weeks or months after their release, as new and "better" information flows in. Thus, an increase in the money supply can turn into a decrease, or a large drop in the leading indicators can change to a moderate increase. These revisions occur with such regularity you would think that investors, particularly pros, would treat them with the skepticism they deserve. Alas, the real world refuses to follow the textbooks. Experience notwithstanding, investors treat as gospel all authoritative-sounding releases that they think pinpoint the development of important trends. An example of how instant news threw investors into a tailspin occurred in July of 1996. Preliminary statistics indicated the economy was beginning to gain steam. The flash figures showed that GDP (gross domestic product) would rise at a 3% rate in the next several quarters, a rate higher than expected. Many people, convinced by these statistics that rising interest rates were imminent, bailed out of the stock market that month. To the end of that year, the GDP growth figures had been revised down significantly (unofficially, a minimum of a dozen times, and officially at least twice). The market rocketed ahead to new highs to August l997, but a lot of investors had retreated to the sidelines on the preliminary bad news. The advice of a world champion chess player when asked how to avoid making a bad move. His answer: "Sit on your hands . But professional investors don't sit on their hands; they dance on tiptoe, ready to flit after the least particle of information as if it were a strongly documented trend. The law of small numbers, in such cases, results in decisions sometimes bordering on the inane. Tversky and Kahneman's findings, which have been repeatedly confirmed, are particularly important to our understanding of some stock market errors and lead to another rule that investors should follow.

"Tversky and Kahneman's findings ... lead to another rule that investors should follow". Which rule is the author talking about?

I. Not to be influenced by the short term and occasional record of a money manager, broker, analysts, or advisor, no matter how impressive.

II. To accept cursory economic or investment news without significant substantiation but supported by statistical evidence even if limited in data sufficiency.

III. In making decisions we become overly immersed in the details of a particular situation and consider all the outcomes of similar experience in our past.

IV. None of the above.

Solution: Statement I is the general sentiment that can be derived from the first paragraph of the passage. It reflects how people are misled by occasional records and correct predictions which are actually guesses. Statement II essentially means that economic news can be accepted if it has statistical support (something that again gels with the general sentiment of the passage). Statement III is another idea that the passage author, Tversky and Kahneman would agree with. Thus, we have arrived at three statements that gel with the general ideas presented in the passage. None of them specifically links up with the last portion of the passage but all are relevant for the passage, we can say these findings would figure in the next rule to be stated by the author.

QUESTION: 7

People are continually enticed by such "hot" performance, even if it lasts for brief periods. Because of this susceptibility, brokers or analysts who have had one or two stocks move up sharply, or technicians who call one turn correctly, are believed to have established a credible record and can readily find market followings. Likewise, an advisory service that is right for a brief time can beat its drums loudly. Elaine Garzarelli gained near immortality when she purportedly "called" the 1987 crash. Although, as the market strategist for Shearson Lehman, her forecast was never published in a research report, nor indeed communicated to its clients, she still received widespread recognition and publicity for this call, which was made in a short TV interview on CNBC. Still, her remark on CNBC that the Dow could drop sharply from its then 5300 level rocked an already nervous market on July 23, 1996. What had been a 40-point gain for the Dow turned into a 40-point loss, a good deal of which was attributed to her comments.

The truth is, market-letter writers have been wrong in their judgments far more often than they would like to remember. However, advisors understand that the public considers short-term results meaningful when they are, more often than not, simply chance. Those in the public eye usually gain large numbers of new subscribers for being right by random luck. Which brings us to another important probability error that falls under the broad rubric of representativeness. Amos Tversky and Daniel Kahneman call this one the "law of small numbers.". The statistically valid "law of large numbers" states that large samples will usually be highly representative of the population from which they are drawn; for example, public opinion polls are fairly accurate because they draw on large and representative groups. The smaller the sample used, however (or the shorter the record), the more likely the findings are chance rather than meaningful. Yet the Tversky and Kahneman study showed that typical psychological or educational experimenters gamble their research theories on samples so small that the results have a very high probability of being chance. This is the same as gambling on the single good call of an advisor. The psychologists and educators are far too confident in the significance of results based on a few observations or a short period of time, even though they are trained in statistical techniques and are aware of the dangers.

Note how readily people over generalize the meaning of a small number of supporting facts. Limited statistical evidence seems to satisfy our intuition no matter how inadequate the depiction of reality. Sometimes the evidence we accept runs to the absurd. A good example of the major overemphasis on small numbers is the almost blind faith investors place in governmental economic releases on employment, industrial production, the consumer price index, the money supply, the leading economic indicators, etc. These statistics frequently trigger major stock- and bond-market reactions, particularly if the news is bad. Flash statistics, more times than not, are near worthless. Initial economic and Fed figures are revised significantly for weeks or months after their release, as new and "better" information flows in. Thus, an increase in the money supply can turn into a decrease, or a large drop in the leading indicators can change to a moderate increase. These revisions occur with such regularity you would think that investors, particularly pros, would treat them with the skepticism they deserve. Alas, the real world refuses to follow the textbooks. Experience notwithstanding, investors treat as gospel all authoritative-sounding releases that they think pinpoint the development of important trends. An example of how instant news threw investors into a tailspin occurred in July of 1996. Preliminary statistics indicated the economy was beginning to gain steam. The flash figures showed that GDP (gross domestic product) would rise at a 3% rate in the next several quarters, a rate higher than expected. Many people, convinced by these statistics that rising interest rates were imminent, bailed out of the stock market that month. To the end of that year, the GDP growth figures had been revised down significantly (unofficially, a minimum of a dozen times, and officially at least twice). The market rocketed ahead to new highs to August l997, but a lot of investors had retreated to the sidelines on the preliminary bad news. The advice of a world champion chess player when asked how to avoid making a bad move. His answer: "Sit on your hands . But professional investors don't sit on their hands; they dance on tiptoe, ready to flit after the least particle of information as if it were a strongly documented trend. The law of small numbers, in such cases, results in decisions sometimes bordering on the inane. Tversky and Kahneman's findings, which have been repeatedly confirmed, are particularly important to our understanding of some stock market errors and lead to another rule that investors should follow.

According to the passage which statement written below is farthest in explaining the meaning of the passage above?

I. Market letter writers have been wrong in their judgments many times but they continue to express their opinion as dramatic predictions and well-times calls result in huge rewards to analysts, journalists and popular writers.

II. Public opinion polls are fairly accurate because they are based on randomly selected diminutive representative groups and hence are more meaningful than intuitive statistics of an outcome.

III. People generally limit the need for hefty statistical evidence as it satisfies their intuition without reflecting the reality.

IV. None of the above.

Solution: This is a moderate level question, especially considering some of the other questions in this passage. Statement II is clearly incorrect, as the author completely counters it in the passage. Refer to the lines: The smaller the sample used, however (or the shorter the record), the more likely the findings are chance rather than meaningful.

Statements I and III are correct, according to the information provided in the passage.

QUESTION: 8

Read the following passage carefully and answer the questions given at the end.

Before the internet, one of the most rapid changes to the global economy and trade was wrought by something so blatantly useful that it is hard to imagine a struggle to get it adopted: the shipping container. In the early 1960s, before the standard container became ubiquitous, freight costs were I0 per cent of the value of US imports, about the same barrier to trade as the average official government import tariff. Yet in a journey that went halfway round the world, half of those costs could be incurred in two ten-mile movements through the ports at either end. The predominant 'break-bulk' method, where each shipment was individually split up into loads that could be handled by a team of dockers, was vastly complex and labour-intensive. Ships could take weeks or months to load, as a huge variety of cargoes of different weights, shapes and sizes had to be stacked together by hand. Indeed, one of the most unreliable aspects of such a labour-intensive process was the labour. Ports, like mines, were frequently seething pits of industrial unrest. Irregular work on one side combined with what was often a tight-knit, well -organized labour community on the other.

In 1956, loading break-bulk cargo cost $5.83 per ton. The entrepreneurial genius who saw the possibilities for standardized container shipping, Malcolm McLean, floated his first containerized ship in that year and claimed to be able to shift cargo for 15.8 cents a ton. Boxes of the same size that could be loaded by crane and neatly stacked were much faster to load. Moreover, carrying cargo in a standard container would allow it to be shifted between truck, train and ship without having to be repacked each time.

But between McLean's container and the standardization of the global market were an array of formidable obstacles. They began at home in the US with the official Interstate Commerce Commission, which could prevent price competition by setting rates for freight haulage by route and commodity, and the powerful International Longshoremen's Association (ILA) labour union. More broadly, the biggest hurdle was achieving what economists call 'network effects': the benefit of a standard technology rises exponentially as more people use it. To dominate world trade, containers had to be easily interchangeable between different shipping lines, ports, trucks and railcars. And to maximize efficiency, they all needed to be the same size. The adoption of a network technology often involves overcoming the resistance of those who are heavily invested in the old system. And while the efficiency gains are clear to see, there are very obvious losers as well as winners. For containerization, perhaps the most spectacular example was the demise of New York City as a port.

In the early I950s, New York handled a third of US seaborne trade in manufactured goods. But it was woefully inefficient, even with existing break-bulk technology: 283 piers, 98 of which were able to handle ocean-going ships, jutted out into the river from Brooklyn and Manhattan. Trucks bound for the docks had to drive through the crowded, narrow streets of Manhattan, wait for an hour or two before even entering a pier, and then undergo a laborious two-stage process in which the goods foot were unloaded into a transit shed and then loaded onto a ship. 'Public loader' work gangs held exclusive rights to load and unload on a particular pier, a power in effect granted by the ILA, which enforced its monopoly with sabotage and violence against competitors. The ILA fought ferociously against containerization, correctly foreseeing that it would destroy their privileged position as bandits controlling the mountain pass. On this occasion, bypassing them simply involved going across the river. A container port was built in New Jersey, where a 1500-foot wharf allowed ships to dock parallel to shore and containers to be lifted on and off by crane. Between 1963 - 4 and 1975 - 6, the number of days worked by longshoremen in Manhattan went from 1.4 million to 127,041.

Containers rapidly captured the transatlantic market, and then the growing trade with Asia. The effect of containerization is hard to see immediately in freight rates, since the oil price hikes of the 1970s kept them high, but the speed with which shippers adopted; containerization made it clear it brought big benefits of efficiency and cost. The extraordinary growth of the Asian tiger economies of Singapore, Taiwan, Korea and Hong Kong, which based their development strategy on exports, was greatly helped by the container trade that quickly built up between the US and east Asia. Ocean-borne exports from South Korea were 2.9 million tons in 1969 and 6 million in 1973, and its exports to the US tripled.

But the new technology did not get adopted all on its own. It needed a couple of pushes from the government -both, as it happens, largely to do with the military. As far as the ships were concerned, the same link between the merchant and military navy that had inspired the Navigation Acts in seventeenth-century England endured into twentieth-century America. The government's first helping hand was to give a spur to the system by adopting it to transport military cargo. The US armed forces, seeing the efficiency of the system, started contracting McLean's company PanAtlantic, later renamed Sea-land, to carry equipment to the quarter of a million American soldiers stationed in Western Europe. One of the few benefits of America's misadventure in Vietnam was a rapid expansion of containerization. Because war involves massive movements of men and material, it is often armies that pioneer new techniques in supply chains.

The government's other role was in banging heads together sufficiently to get all companies to accept the same size container. Standard sizes were essential to deliver the economies of scale that came from interchangeability - which, as far as the military was concerned, was vital if the ships had to be commandeered in case war broke out. This was a significant problem to overcome, not least because all the companies that had started using the container had settled on different sizes. PanAtlantic used 35-foot containers, because that was the maximum size allowed on the highways in its home base in New Jersey. Another of the big shipping companies, Matson Navigation, used a 24-foot container since its biggest trade was in canned pineapple from Hawaii, and a container bigger than that would have been too heavy for a crane to lift. Grace Line, which largely traded with Latin America, used a foot container that was easier to truck around winding mountain roads.

Establishing a US standard and then getting it adopted internationally took more than a decade.

Indeed, not only did the US Maritime Administration have to mediate in these rivalries but also to fight its own turf battles with the American Standards Association, an agency set up by the private sector. The matter was settled by using the power of federal money: the Federal Maritime Board (FMB), which handed out public subsidies for shipbuilding, decreed that only the 8 x 8-foot containers in the lengths of l0, 20, 30 or 40 feet would be eligible for handouts.

Identify the correct statement:

Solution: Option 2 is the correct option. This is because, we see from the paragraph that the containerization helped in the growth of Asian economies that is Taiwan, Singapore, and South Korea. Due to this the exports from South Korea more than doubled from 1969 to 1973 and South Korea's exports to the US tripled by 1973.

QUESTION: 9

Read the following passage carefully and answer the questions given at the end.

Before the internet, one of the most rapid changes to the global economy and trade was wrought by something so blatantly useful that it is hard to imagine a struggle to get it adopted: the shipping container. In the early 1960s, before the standard container became ubiquitous, freight costs were I0 per cent of the value of US imports, about the same barrier to trade as the average official government import tariff. Yet in a journey that went halfway round the world, half of those costs could be incurred in two ten-mile movements through the ports at either end. The predominant 'break-bulk' method, where each shipment was individually split up into loads that could be handled by a team of dockers, was vastly complex and labour-intensive. Ships could take weeks or months to load, as a huge variety of cargoes of different weights, shapes and sizes had to be stacked together by hand.

Indeed, one of the most unreliable aspects of such a labour-intensive process was the labour. Ports, like mines, were frequently seething pits of industrial unrest. Irregular work on one side combined with what was often a tight-knit, well -organized labour community on the other.

In 1956, loading break-bulk cargo cost $5.83 per ton. The entrepreneurial genius who saw the possibilities for standardized container shipping, Malcolm McLean, floated his first containerized ship in that year and claimed to be able to shift cargo for 15.8 cents a ton. Boxes of the same size that could be loaded by crane and neatly stacked were much faster to load. Moreover, carrying cargo in a standard container would allow it to be shifted between truck, train and ship without having to be repacked each time.

But between McLean's container and the standardization of the global market were an array of formidable obstacles. They began at home in the US with the official Interstate Commerce Commission, which could prevent price competition by setting rates for freight haulage by route and commodity, and the powerful International Longshoremen's Association (ILA) labour union. More broadly, the biggest hurdle was achieving what economists call 'network effects': the benefit of a standard technology rises exponentially as more people use it. To dominate world trade, containers had to be easily interchangeable between different shipping lines, ports, trucks and railcars. And to maximize efficiency, they all needed to be the same size. The adoption of a network technology often involves overcoming the resistance of those who are heavily invested in the old system. And while the efficiency gains are clear to see, there are very obvious losers as well as winners. For containerization, perhaps the most spectacular example was the demise of New York City as a port.

In the early I950s, New York handled a third of US seaborne trade in manufactured goods. But it was woefully inefficient, even with existing break-bulk technology: 283 piers, 98 of which were able to handle ocean-going ships, jutted out into the river from Brooklyn and Manhattan. Trucks bound for the docks had to drive through the crowded, narrow streets of Manhattan, wait for an hour or two before even entering a pier, and then undergo a laborious two-stage process in which the goods foot were unloaded into a transit shed and then loaded onto a ship. 'Public loader' work gangs held exclusive rights to load and unload on a particular pier, a power in effect granted by the ILA, which enforced its monopoly with sabotage and violence against competitors. The ILA fought ferociously against containerization, correctly foreseeing that it would destroy their privileged position as bandits controlling the mountain pass. On this occasion, bypassing them simply involved going across the river. A container port was built in New Jersey, where a 1500-foot wharf allowed ships to dock parallel to shore and containers to be lifted on and off by crane. Between 1963 - 4 and 1975 - 6, the number of days worked by longshoremen in Manhattan went from 1.4 million to 127,041.

Containers rapidly captured the transatlantic market, and then the growing trade with Asia. The effect of containerization is hard to see immediately in freight rates, since the oil price hikes of the 1970s kept them high, but the speed with which shippers adopted; containerization made it clear it brought big benefits of efficiency and cost. The extraordinary growth of the Asian tiger economies of Singapore, Taiwan, Korea and Hong Kong, which based their development strategy on exports, was greatly helped by the container trade that quickly built up between the US and east Asia. Ocean-borne exports from South Korea were 2.9 million tons in 1969 and 6 million in 1973, and its exports to the US tripled.

But the new technology did not get adopted all on its own. It needed a couple of pushes from the government -both, as it happens, largely to do with the military. As far as the ships were concerned, the same link between the merchant and military navy that had inspired the Navigation Acts in seventeenth-century England endured into twentieth-century America. The government's first helping hand was to give a spur to the system by adopting it to transport military cargo. The US armed forces, seeing the efficiency of the system, started contracting McLean's company PanAtlantic, later renamed Sea-land, to carry equipment to the quarter of a million American soldiers stationed in Western Europe. One of the few benefits of America's misadventure in Vietnam was a rapid expansion of containerization. Because war involves massive movements of men and material, it is often armies that pioneer new techniques in supply chains.

The government's other role was in banging heads together sufficiently to get all companies to accept the same size container. Standard sizes were essential to deliver the economies of scale that came from interchangeability - which, as far as the military was concerned, was vital if the ships had to be commandeered in case war broke out. This was a significant problem to overcome, not least because all the companies that had started using the container had settled on different sizes. PanAtlantic used 35-foot containers, because that was the maximum size allowed on the highways in its home base in New Jersey. Another of the big shipping companies, Matson Navigation, used a 24-foot container since its biggest trade was in canned pineapple from Hawaii, and a container bigger than that would have been too heavy for a crane to lift. Grace Line, which largely traded with Latin America, used a foot container that was easier to truck around winding mountain roads.

Establishing a US standard and then getting it adopted internationally took more than a decade.

Indeed, not only did the US Maritime Administration have to mediate in these rivalries but also to fight its own turf battles with the American Standards Association, an agency set up by the private sector. The matter was settled by using the power of federal money: the Federal Maritime Board (FMB), which handed out public subsidies for shipbuilding, decreed that only the 8 x 8-foot containers in the lengths of l0, 20, 30 or 40 feet would be eligible for handouts.

Identify the false statement:

Solution: Option 1 is the incorrect statement as the ships after entering a pier, had to undergo a 2 stage process for loading onto a ship. The goods were first unloaded into a transit shed and then loaded onto a ship. Therefore option 1, which calls it a 3 stage process, is the incorrect statement.

QUESTION: 10

Read the following passage carefully and answer the questions given at the end.

Before the internet, one of the most rapid changes to the global economy and trade was wrought by something so blatantly useful that it is hard to imagine a struggle to get it adopted: the shipping container. In the early 1960s, before the standard container became ubiquitous, freight costs were I0 per cent of the value of US imports, about the same barrier to trade as the average official government import tariff. Yet in a journey that went halfway round the world, half of those costs could be incurred in two ten-mile movements through the ports at either end. The predominant 'break-bulk' method, where each shipment was individually split up into loads that could be handled by a team of dockers, was vastly complex and labour-intensive. Ships could take weeks or months to load, as a huge variety of cargoes of different weights, shapes and sizes had to be stacked together by hand. Indeed, one of the most unreliable aspects of such a labour-intensive process was the labour. Ports, like mines, were frequently seething pits of industrial unrest. Irregular work on one side combined with what was often a tight-knit, well -organized labour community on the other.

In 1956, loading break-bulk cargo cost $5.83 per ton. The entrepreneurial genius who saw the possibilities for standardized container shipping, Malcolm McLean, floated his first containerized ship in that year and claimed to be able to shift cargo for 15.8 cents a ton. Boxes of the same size that could be loaded by crane and neatly stacked were much faster to load. Moreover, carrying cargo in a standard container would allow it to be shifted between truck, train and ship without having to be repacked each time.

But between McLean's container and the standardization of the global market were an array of formidable obstacles. They began at home in the US with the official Interstate Commerce Commission, which could prevent price competition by setting rates for freight haulage by route and commodity, and the powerful International Longshoremen's Association (ILA) labour union. More broadly, the biggest hurdle was achieving what economists call 'network effects':

the benefit of a standard technology rises exponentially as more people use it. To dominate world trade, containers had to be easily interchangeable between different shipping lines, ports, trucks and railcars. And to maximize efficiency, they all needed to be the same size. The adoption of a network technology often involves overcoming the resistance of those who are heavily invested in the old system. And while the efficiency gains are clear to see, there are very obvious losers as well as winners. For containerization, perhaps the most spectacular example was the demise of New York City as a port.

In the early I950s, New York handled a third of US seaborne trade in manufactured goods. But it was woefully inefficient, even with existing break-bulk technology: 283 piers, 98 of which were able to handle ocean-going ships, jutted out into the river from Brooklyn and Manhattan. Trucks bound for the docks had to drive through the crowded, narrow streets of Manhattan, wait for an hour or two before even entering a pier, and then undergo a laborious two-stage process in which the goods foot were unloaded into a transit shed and then loaded onto a ship. 'Public loader' work gangs held exclusive rights to load and unload on a particular pier, a power in effect granted by the ILA, which enforced its monopoly with sabotage and violence against competitors. The ILA fought ferociously against containerization, correctly foreseeing that it would destroy their privileged position as bandits controlling the mountain pass. On this occasion, bypassing them simply involved going across the river. A container port was built in New Jersey, where a 1500-foot wharf allowed ships to dock parallel to shore and containers to be lifted on and off by crane. Between 1963 - 4 and 1975 - 6, the number of days worked by longshoremen in Manhattan went from 1.4 million to 127,041.

Containers rapidly captured the transatlantic market, and then the growing trade with Asia. The effect of containerization is hard to see immediately in freight rates, since the oil price hikes of the 1970s kept them high, but the speed with which shippers adopted; containerization made it clear it brought big benefits of efficiency and cost. The extraordinary growth of the Asian tiger economies of Singapore, Taiwan, Korea and Hong Kong, which based their development strategy on exports, was greatly helped by the container trade that quickly built up between the US and east Asia. Ocean-borne exports from South Korea were 2.9 million tons in 1969 and 6 million in 1973, and its exports to the US tripled.

But the new technology did not get adopted all on its own. It needed a couple of pushes from the government -both, as it happens, largely to do with the military. As far as the ships were concerned, the same link between the merchant and military navy that had inspired the Navigation Acts in seventeenth-century England endured into twentieth-century America. The government's first helping hand was to give a spur to the system by adopting it to transport military cargo. The US armed forces, seeing the efficiency of the system, started contracting McLean's company PanAtlantic, later renamed Sea-land, to carry equipment to the quarter of a million American soldiers stationed in Western Europe. One of the few benefits of America's misadventure in Vietnam was a rapid expansion of containerization. Because war involves massive movements of men and material, it is often armies that pioneer new techniques in supply chains.

The government's other role was in banging heads together sufficiently to get all companies to accept the same size container. Standard sizes were essential to deliver the economies of scale that came from interchangeability - which, as far as the military was concerned, was vital if the ships had to be commandeered in case war broke out. This was a significant problem to overcome, not least because all the companies that had started using the container had settled on different sizes. PanAtlantic used 35-foot containers, because that was the maximum size allowed on the highways in its home base in New Jersey. Another of the big shipping companies, Matson Navigation, used a 24-foot container since its biggest trade was in canned pineapple from Hawaii, and a container bigger than that would have been too heavy for a crane to lift. Grace Line, which largely traded with Latin America, used a foot container that was easier to truck around winding mountain roads.

Establishing a US standard and then getting it adopted internationally took more than a decade.

Indeed, not only did the US Maritime Administration have to mediate in these rivalries but also to fight its own turf battles with the American Standards Association, an agency set up by the private sector. The matter was settled by using the power of federal money: the Federal

Maritime Board (FMB), which handed out public subsidies for shipbuilding, decreed that only the 8 x 8-foot containers in the lengths of l0, 20, 30 or 40 feet would be eligible for handouts.

The emergence of containerization technology in early seventies resulted in:

Solution: Option 3 is the correct answer as containerization helped in the growth of various Asian Economies, thus increasing exports all over the world. Option 2) is incorrect as freight costs were not reduced in terms of expressed percentage of imports due to rise in prices of petroleum. Therefore, option 3.

QUESTION: 11

Read the following passage carefully and answer the questions given at the end.

Before the internet, one of the most rapid changes to the global economy and trade was wrought by something so blatantly useful that it is hard to imagine a struggle to get it adopted: the shipping container. In the early 1960s, before the standard container became ubiquitous, freight costs were I0 per cent of the value of US imports, about the same barrier to trade as the average official government import tariff. Yet in a journey that went halfway round the world, half of those costs could be incurred in two ten-mile movements through the ports at either end. The predominant 'break-bulk' method, where each shipment was individually split up into loads that could be handled by a team of dockers, was vastly complex and labour-intensive. Ships could take weeks or months to load, as a huge variety of cargoes of different weights, shapes and sizes had to be stacked together by hand. Indeed, one of the most unreliable aspects of such a labour-intensive process was the labour. Ports, like mines, were frequently seething pits of industrial unrest. Irregular work on one side combined with what was often a tight-knit, well -organized labour community on the other.

In 1956, loading break-bulk cargo cost $5.83 per ton. The entrepreneurial genius who saw the possibilities for standardized container shipping, Malcolm McLean, floated his first containerized ship in that year and claimed to be able to shift cargo for 15.8 cents a ton. Boxes of the same size that could be loaded by crane and neatly stacked were much faster to load. Moreover, carrying cargo in a standard container would allow it to be shifted between truck, train and ship without having to be repacked each time.

But between McLean's container and the standardization of the global market were an array of formidable obstacles. They began at home in the US with the official Interstate Commerce Commission, which could prevent price competition by setting rates for freight haulage by route and commodity, and the powerful International Longshoremen's Association (ILA) labour union. More broadly, the biggest hurdle was achieving what economists call 'network effects': the benefit of a standard technology rises exponentially as more people use it. To dominate world trade, containers had to be easily interchangeable between different shipping lines, ports, trucks and railcars. And to maximize efficiency, they all needed to be the same size. The adoption of a network technology often involves overcoming the resistance of those who are heavily invested in the old system. And while the efficiency gains are clear to see, there are very obvious losers as well as winners. For containerization, perhaps the most spectacular example was the demise of New York City as a port.

In the early I950s, New York handled a third of US seaborne trade in manufactured goods. But it was woefully inefficient, even with existing break-bulk technology: 283 piers, 98 of which were able to handle ocean-going ships, jutted out into the river from Brooklyn and Manhattan. Trucks bound for the docks had to drive through the crowded, narrow streets of Manhattan, wait for an hour or two before even entering a pier, and then undergo a laborious two-stage process in which the goods foot were unloaded into a transit shed and then loaded onto a ship. 'Public loader' work gangs held exclusive rights to load and unload on a particular pier, a power in effect granted by the ILA, which enforced its monopoly with sabotage and violence against competitors. The ILA fought ferociously against containerization, correctly foreseeing that it would destroy their privileged position as bandits controlling the mountain pass. On this occasion, bypassing them simply involved going across the river. A container port was built in New Jersey, where a 1500-foot wharf allowed ships to dock parallel to shore and containers to be lifted on and off by crane. Between 1963 - 4 and 1975 - 6, the number of days worked by longshoremen in Manhattan went from 1.4 million to 127,041.

Containers rapidly captured the transatlantic market, and then the growing trade with Asia. The effect of containerization is hard to see immediately in freight rates, since the oil price hikes of the 1970s kept them high, but the speed with which shippers adopted; containerization made it clear it brought big benefits of efficiency and cost. The extraordinary growth of the Asian tiger economies of Singapore, Taiwan, Korea and Hong Kong, which based their development strategy on exports, was greatly helped by the container trade that quickly built up between the US and east Asia. Ocean-borne exports from South Korea were 2.9 million tons in 1969 and 6 million in 1973, and its exports to the US tripled.

But the new technology did not get adopted all on its own. It needed a couple of pushes from the government -both, as it happens, largely to do with the military. As far as the ships were concerned, the same link between the merchant and military navy that had inspired the Navigation Acts in seventeenth-century England endured into twentieth-century America. The government's first helping hand was to give a spur to the system by adopting it to transport military cargo. The US armed forces, seeing the efficiency of the system, started contracting McLean's company PanAtlantic, later renamed Sea-land, to carry equipment to the quarter of a million American soldiers stationed in Western Europe. One of the few benefits of America's misadventure in Vietnam was a rapid expansion of containerization. Because war involves massive movements of men and material, it is often armies that pioneer new techniques in supply chains.

The government's other role was in banging heads together sufficiently to get all companies to accept the same size container. Standard sizes were essential to deliver the economies of scale that came from interchangeability - which, as far as the military was concerned, was vital if the ships had to be commandeered in case war broke out. This was a significant problem to overcome, not least because all the companies that had started using the container had settled on different sizes. PanAtlantic used 35-foot containers, because that was the maximum size allowed on the highways in its home base in New Jersey. Another of the big shipping companies, Matson Navigation, used a 24-foot container since its biggest trade was in canned pineapple from Hawaii, and a container bigger than that would have been too heavy for a crane to lift. Grace Line, which largely traded with Latin America, used a foot container that was easier to truck around winding mountain roads.

Establishing a US standard and then getting it adopted internationally took more than a decade.

Indeed, not only did the US Maritime Administration have to mediate in these rivalries but also to fight its own turf battles with the American Standards Association, an agency set up by the private sector. The matter was settled by using the power of federal money: the Federal Maritime Board (FMB), which handed out public subsidies for shipbuilding, decreed that only the 8 x 8-foot containers in the lengths of l0, 20, 30 or 40 feet would be eligible for handouts.

Match the following

Solution: Option 4 is the correct answer. ILA or International Longshoremen's Association was used to settle freight haulage prices for dockers. FMB handed out subsidies for shipbuilding and introduced the standardisation of containers into blocks of 8x8 foot of 10-20-30-40 feet each. Therefore option 4 is the correct answer

QUESTION: 12

Choose the option that is CLOSEST in meaning to the capitalized words.

TUMESCENT

Solution: Tumescent means 'swollen or becoming swollen'

Engorge means 'cause to swell with blood, water, or another fluid'

QUESTION: 13

Choose the option that is CLOSEST in meaning to the capitalized words.

TWADDLE:

Solution: Twaddle means 'trivial or foolish speech or writing; nonsense

Waffle means 'speak or write at length in a vague or trivial manner'

QUESTION: 14

Choose the option that is CLOSEST in meaning to the capitalized words.

STIMULUS

Solution: Stimulus means something that incites or rouses to action; an incentive.

QUESTION: 15

Each question below has blanks, each blank indicating that something has been omitted. Choose the set of words for each blank which best fits the meaning of the sentence as a whole.

Recently, global attention was focussed ____ these two items ____ India argued that the adoption of the protocol on trade facilitation should be postponed till a permanent solution ____ public stockholding for food security had been worked out.

Solution: prepositions 'on' and 'as' fits first and second blank Preposition 'to' will be used in the following cases

-- Used to indicate relationship

-- Used to indicate a time or a period

-- Used to indicate the place, person, or thing that someone or something moves toward, or the direction of something

-- Used to indicate a limit or an ending point

QUESTION: 16

Each question below has blanks, each blank indicating that something has been omitted. Choose the set of words for each blank which best fits the meaning of the sentence as a whole.

There is no doubt that India needs to equip its youth ____ greater work skills. At present, the country churns ____ a mostly semi-literate workforce without the requisite marketable skills ____ a globalised world

Solution: with greater skills'

Prepositions 'out' and 'in' fit second and third blank

QUESTION: 17

Each question below has blanks, each blank indicating that something has been omitted. Choose the set of words for each blank which best fits the meaning of the sentence as a whole.

There has been a slight decrease in agriculture growth ____ 3.8 per cent ____ 4 per cent a year ago

Solution: to 3.8 percent growth from 4 percent

QUESTION: 18

Each question below has blanks, each blank indicating that something has been omitted. Choose the set of words for each blank which best fits the meaning of the sentence as a whole.

That was the chronic shortage _____ specie, particularly ____ the years before the gold discoveries in Portuguese Brazil in 1693

Solution: Preposition 'of' will be used in the following cases

-- who/what does it belong to. For ex: a page of the book

-- what does it show. For ex: the picture of a palace Preposition 'in' fits second blank

QUESTION: 19

Arrange the sentences A, B, C, and D from a logical sequence between sentences 1 and 6

1. The success of any unit in a competitive environment depends on prudent management sources.

2. In this context it would have been more appropriate if the concept of accelerated depreciation, together with additional incentives towards capital allowances for recouping a portion of the cost of replacements out of the current generations, had been accepted.

3. Added to this are negligible retention of profits because of inadequate capital allowances and artificial disallowance of genuine outflows.

4. One significant cause for poor generation of surpluses is the high cost of capital and its servicing cost.

5. The lack of a mechanism in India tax laws for quick recovery of capital costs has not received its due attention.

6. While this may apparently look costly from the point of view of the exchequer, the ultimate cost of the Government and the community in the form of losses suffered through poor viability will be prohibitive.

Solution: Reason for not managing resources prudently is given in statement C. Hence, it follows statement 1 One more reason for the same is given in statement Hence, it follows statement C Current scenario about India tax laws is given in statement D. Hence, it follows statement B Statement A is elaboration of the point mentioned in statement D. Hence, it follows statement D Therefore, the correct sequence is 1CBDA6

QUESTION: 20

Arrange the sentences A, B, C, and D from a logical sequence between sentences 1 and 6

1. Count Rumford is perhaps best known for his observations on the nature of heat.

2. He undertook several experiments in order to test the theories of the origin of frictional heat.

3. According to the calorists, the heat was

produced by the "caloric" squeezed out of the chips in the process of separating them from the larger pieces of metal.

4. Lavoisier had introduced the term "caloric" for the weightless substance heat, and had included it among the chemical elements, along with carbon, nitrogen and oxygen.

5. In the munitions factory in Munich, Rumford noticed that a considerable degree of heat developed in a brass gun while it was being bored.

6. Rumford could not believe that the big amount of heat generated could have come from the small amount of dust created.

Solution: 'He' in statement A points to Count Rumford and gives details about his work. Hence, it follows statement 1

Statement D gives more details about his work. Hence, it follows statement A The term 'caloric' used in statement B is introduced in statement C. hence, statement B follows C Therefore, the correct sequence is 1ADCB6

QUESTION: 21

Arrange the sentences A, B, C, and D from a logical sequence between sentences 1 and 6

1. The idea of sea-floor spreading actually preceded the theory of plate tectonics.

2. The hypothesis was soon substantiated by the discovery that periodic reversals of the earth's magnetic field are recorded in the oceanic crust.

3. In its original version, it described the creation and destruction of the ocean floor, but it did not specify rigid lithospheric plates.

4. An explanation of this process devised by F.J. Vine and D.H. Mathews of Princeton is now generally accepted.

5. The sea-floor spreading hypothesis was formulated chiefly by Harry H. Hess of Princeton University in the early 1960's.

6. As magma rises under the mid-ocean, ferromagnetic minerals in the magma become magnetised in the direction of the geomagnetic field.

Solution: Origin of sea-floor spreading is given in statement D. Hence, it follows statement 1 Currently accepted explanation of sea-floor spreading process is given in statement C. Hence, it follows statement D Statement B gives more details about the process mentioned in statement C. Hence, it follows C Therefore, the correct sequence is 1DCBA6

QUESTION: 22

In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which fits the blanks appropriately. Find out the appropriate word in each case.

The world's climate has always changed and species have evolved accordingly to survive it. The surprising fact about the (A) between evolution and global warming is that it is not linear. (B) temperatures alone are not (C) of evolution.

Evolution is also the, (D) of seasonal changes.

Solution: If we observe the complete sentence, then we can understand that the sentence is trying to explain the relationship between evolution and global warming.

QUESTION: 23

In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which fits the blanks appropriately. Find out the appropriate word in each case.

The world's climate has always changed and species have evolved accordingly to survive it. The surprising fact about the (A) between evolution and global warming is that it is not linear. (B) temperatures alone are not (C) of evolution. Evolution is also the, (D) of seasonal changes.

Solution: This sentence is explaining that temperature alone is not responsible for evolution. Hence, 'however' is the suitable option.

QUESTION: 24

In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which fits the blanks appropriately. Find out the appropriate word in each case.

The world's climate has always changed and species have evolved accordingly to survive it. The surprising fact about the (A) between evolution and global warming is that it is not linear. (B) temperatures alone are not (C) of evolution. Evolution is also the, (D) of seasonal changes.

Solution: 'means' meaning: an action or system by which a result is achieved; a method

QUESTION: 25

In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which fits the blanks appropriately. Find out the appropriate word in each case.

The world's climate has always changed and species have evolved accordingly to survive it. The surprising fact about the (A) between evolution and global warming is that it is not linear. (B) temperatures alone are not (C) of evolution. Evolution is also the, (D) of seasonal changes.

Solution: precursor means a person or thing that comes before another of the same kind; a forerunner Hence, Evolution is also the, precursor of seasonal changes

QUESTION: 26

Each question is a sentence broken into four parts. Select that part which has an error.

Solution: Instead of 'who' , 'whom' should be used

QUESTION: 27

Each question is a sentence broken into four parts. Select that part which has an error.

Solution: 'garden in its front' is correct usage

QUESTION: 28

Each question is a sentence broken into four parts. Select that part which has an error.

Solution: 'am planning to go there tomorrow' is correct.

Option 4 should be 'to go there tomorrow' instead of 'I would go there tomorrow.'

QUESTION: 29

Each question is a sentence broken into four parts. Select that part which has an error

Solution: usage of 'ambitious' is not correct in the given sentence

QUESTION: 30

In the following set of questions, a word in capital is followed by four options. From the options, find the appropriate word that reflects the Opposite / Contradictory meaning (Antonym) to the given word.

OPPROBRIUM

Solution: Opprobrium means 'harsh criticism or censure'

Hence, honour is opposite word to opprobrium

QUESTION: 31

In the following set of questions, a word in capital is followed by four options. From the options, find the appropriate word that reflects the Opposite / Contradictory meaning (Antonym) to the given word.

LEAVEN:

Solution: Leaven means 'a pervasive influence that modifies something or transforms it for the better'

Hence, static is the opposite word to Leaven.

QUESTION: 32

In the following set of questions, a word in capital is followed by four options. From the options, find the appropriate word that reflects the Opposite / Contradictory meaning (Antonym) to the given word.

Intertwine

Solution: Intertwine means twist or twine together

QUESTION: 33

Directions for Questions: In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words/ phrases are suggested, one of which fits the blank appropriately. Find out the appropriate word/phrase in each case.

Mobile banking (M banking) involves the use of a mobile phone or any other mobile device to (A) financial transactions linked to a client's account. M banking is new in most countries and most mobile payments models even in developed countries today operate on a (B) scale. A mobile network offers a (C) available technology platform onto which other services can be provided at low cost with effective results. For example, M banking services which use (D) such as SMS can be carried at a cost of less than one US cent per message.

Solution: limited is suitable word as the usage of M banking even in developed countries is also small in size.

Limited means 'restricted in size, amount, or extent; few, small, or short'

Option 4

QUESTION: 34

Directions for Questions: In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words/ phrases are suggested, one of which fits the blank appropriately. Find out the appropriate word/phrase in each case.

Mobile banking (M banking) involves the use of a mobile phone or any other mobile device to (A) financial transactions linked to a client's account. M banking is new in most countries and most mobile payments models even in developed countries today operate on a (B) scale. A mobile network offers a (C) available technology platform onto which other services can be provided at low cost with effective results. For example, M banking services which use (D) such as SMS can be carried at a cost of less than one US cent per message.

(C)

Solution: readily means 'quickly or easily'

Option 1

QUESTION: 35

Directions for Questions: In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words/ phrases are suggested, one of which fits the blank appropriately. Find out the appropriate word/phrase in each case.

Mobile banking (M banking) involves the use of a mobile phone or any other mobile device to (A) financial transactions linked to a client's account. M banking is new in most countries and most mobile payments models even in developed countries today operate on a (B) scale. A mobile network offers a (C) available technology platform onto which other services can be provided at low cost with effective results. For example, M banking services which use (D) such as SMS can be carried at a cost of less than one US cent per message.

(D)

Solution: channels' is the only word that fits in grammatically & contextually.

QUESTION: 36

Each sentence below has been broken up into four parts sequentially (a, b, c, d). Choose that part which contains a mistake. If there is no error in the given sentence, select option 5 - 'No error'

Solution: to the perceived problems' would be correct phrase

QUESTION: 37

Directions for Questions use the following information and answer the following questions: ABC forms an equilateral triangle in which B is 2 km from A. A person starts walking from B in a direction parallel to AC and stops when he reaches a point D directly east of C. He, then, reverses direction and walks till he reaches a point E directly south of C.

Then D is

Solution: Based on the data given, we can draw the following figure

In triangle BDN,

BD2 = BN2 + DN2

4 = 1 + DN2

Hence, DN = √3

Hence, option 2 is correct

QUESTION: 38

Directions for Questions use the following information and answer the following questions: ABC forms an equilateral triangle in which B is 2 km from A. A person starts walking from B in a direction parallel to AC and stops when he reaches a point D directly east of C. He, then, reverses direction and walks till he reaches a point E directly south of C.

The total distance walked by the person is

Solution: Total distance walked by the person = BD + DB + BE = 2 + 2 + 2 = 6 km Option 4

QUESTION: 39

Directions for Questions: A word and number arrangement machine when given an input line of words and numbers rearranges them following a particular rule in each step. The following is an illustration of input rearrangement.

Input : but 32 71 glory fair south 65 84

Step I : south but 32 71 glory fair 65 84

Step II : south 84 but 32 71 glory fair 65

Step III: south 84 glory but 32 71 fair 65

Step IV : south 84 glory 71 but 32 fair 65

Step V : south 84 glory 71 fair but 32 65

Step VI: south 84 glory 71 fair 65 but 32 and Step VI is the last step of the rearrangement.

As per the rules followed in the above steps, find out in each of the following questions the appropriate step for the given input. Step III of an input is: year 92 ultra 15 23 strive house 39 How many more steps will be required to complete the rearrangement?

Solution: Step I: the word which comes last according to alphabetical order is moved to first position

Step II: highest number is moved to second position

Step III: the word which comes last but one according to alphabetical order is moved to third potion

Step IV: second highest number is moved to fourth potion These steps are continued till all the words are arranged in reverse alphabetical order and numbers in descending order Step III: year 92 ultra 15 23 strive house 39

Step IV: year 92 ultra 39 15 23 strive house

Step V: year 92 ultra 39 strive 15 23 house

Step VI: year 92 ultra 39 strive 23 15 house

Step VII: year 92 ultra 39 strive 23 house 15 Hence, four more steps are required to complete the rearrangement

QUESTION: 40

Directions for Questions: A word and number arrangement machine when given an input line of words and numbers rearranges them following a particular rule in each step. The following is an illustration of input rearrangement.

Input : but 32 71 glory fair south 65 84

Step I : south but 32 71 glory fair 65 84

Step II : south 84 but 32 71 glory fair 65

Step III: south 84 glory but 32 71 fair 65

Step IV : south 84 glory 71 but 32 fair 65

Step V : south 84 glory 71 fair but 32 65

Step VI: south 84 glory 71 fair 65 but 32 and Step VI is the last step of the rearrangement. As per the rules followed in the above steps, find out in each of the following questions the appropriate step for the given input. Step III of an input is: year 92 ultra 15 23 strive house 39 Which of the following steps will be the last but one?

Solution: Step I: the word which comes last according to alphabetical order is moved to first position

Step II: highest number is moved to second position

Step III: the word which comes last but one according to alphabetical order is moved to third potion

Step IV: second highest number is moved to fourth potion These steps are continued till all the words are arranged in reverse alphabetical order and numbers in descending order

Input: any how 49 24 far wide 34 69

Step I: wide anyhow 49 24 far 34 69

Step II: wide 69 anyhow 49 24 far 34

Step III: wide 69 how any 49 24 far 34

Step IV: wide 69 how 49 any 24 far 34

Step V: wide 69 how 49 far any 24 34

Step VI: wide 69 how 49 far 34 any 24

Hence, step V is the last but one step

QUESTION: 41

The questions below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage. One theory of school governance can be pictured as an upside-down triangle. Students, teachers and the faculty/parent committee make up the body of the triangle, but the triangle has no point, that is, it has no school principal. Schools are run by the faculty/parent committee, which makes all significant decisions concerning academic standards, curriculum, discipline, extra-curricular activities, etc. As a result, under this theory, innovative teaching methods and progressive academic programs cannot be implemented. The argument depends upon which one of the following assumptions

Solution: The link that allows the conclusion to be drawn in this problem is the assumption that only principals will try new methods and programs. Under this theory of governance by committee, new methods and programs cannot be implemented. Thus, the theory assumes that only individuals will try new ideas. Selection (B) is the correct answer. Selection (C) is a close second. It is supported by the argument, but it understates the breadth of the implied premise. The question states that in this theory of school governance, new methods and programs cannot be implemented, not that they are less likely to be implemented.

QUESTION: 42

The questions below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage. Automobiles use 50 percent of all energy consumed in the United States. Since Congress has passed legislation requiring all cars built after 2002 to be twice as energy-efficient, eventually automobiles will consume only 25 percent.

The argument makes which of the following assumptions?

Solution: The answer is (C). Although cars may be twice as efficient in 2002 if the public uses cars more than twice as much as currently, then automobiles could use more (not less) than 50 percent of energy consumed in the United States.

QUESTION: 43

Directions for Questions: Study the following information carefully and answer the questions given below: P, Q, R, S, T, V and W are seven members of a club. Each of them has a favourite sport from- Chess, Table Tennis, Lawn Tennis, Volleyball, Badminton, Basketball and Carrom, not necessarily in the same order. Each of them also has a specific choice of colour from-Blue, Red, Green, Yellow, Grey, Black and White, not necessarily in the same order. R likes Green and his favourite sport is Badminton. V's choice of colour is neither Red nor Black. T's favourite sport is neither Table Tennis nor Basketball. The one who likes Blue does not like Carrom. The one who likes Volleyball does not like Yellow and Grey. Q's favourite sport is Lawn Tennis and he likes Black. S likes White. W likes Basketball. P likes Volleyball. T likes Blue. The one who likes Basketball does not like Grey.

What is V's choice of colour?

Solution:

QUESTION: 44

Directions for Questions: Study the following information carefully and answer the questions given below: P, Q, R, S, T, V and W are seven members of a club. Each of them has a favourite sport from- Chess, Table Tennis, Lawn Tennis, Volleyball, Badminton, Basketball and Carrom, not necessarily in the same order. Each of them also has a specific choice of colour from-Blue, Red, Green, Yellow, Grey, Black and White, not necessarily in the same order. R likes Green and his favourite sport is Badminton. V's choice of colour is neither Red nor Black. T's favourite sport is neither Table Tennis nor Basketball. The one who likes Blue does not like Carrom. The one who likes Volleyball does not like Yellow and Grey. Q's favourite sport is Lawn Tennis and he likes Black. S likes White. W likes Basketball. P likes Volleyball. T likes Blue. The one who likes Basketball does not like Grey.

What is T's favourite sport?

Solution:

QUESTION: 45

Directions for Questions: Study the following information carefully and answer the questions given below: P, Q, R, S, T, V and W are seven members of a club. Each of them has a favourite sport from- Chess, Table Tennis, Lawn Tennis, Volleyball, Badminton, Basketball and Carrom, not necessarily in the same order. Each of them also has a specific choice of colour from-Blue, Red, Green, Yellow, Grey, Black and White, not necessarily in the same order. R likes Green and his favourite sport is Badminton. V's choice of colour is neither Red nor Black. T's favourite sport is neither Table Tennis nor Basketball. The one who likes Blue does not like Carrom. The one who likes Volleyball does not like Yellow and Grey. Q's favourite sport is Lawn Tennis and he likes Black. S likes White. W likes Basketball. P likes Volleyball. T likes Blue. The one who likes Basketball does not like Grey.

Whose favourite sport is Carrom?

Solution:

QUESTION: 46

In each question below are either two or three Statements followed by two conclusions 1 and II. You have to take the two or three given Statements to be true and then decide which of the given conclusions logically follows from the two/ three given Statements, disregarding the commonly known facts.

Statements:

10% shoes are chappals.

5% chappals are papers.

99% papers are pens.

Conclusions:

I. Some shoes are papers.

II. Some shoes are pens.

Solution: Some shoes may or may not be papers Some shoes may or may not be pens. Hence, neither conclusion I nor II follows.

QUESTION: 47

In each question below are either two or three Statements followed by two conclusions 1 and II. You have to take the two or three given Statements to be true and then decide which of the given conclusions logically follows from the two/ three given Statements, disregarding the commonly known facts.

Statements:

All A are Z.

All Z are X.

All Y are A.

Conclusions:

I. All A are Y.

II. All Y are X.

Solution: All A are not Y. Only some A are Y. Hence, conclusion

I does not follow

All Y are A. All are Z. All Z are X.

Hence, all Y are X

Only conclusion II follows

QUESTION: 48

In each question below are either two or three Statements followed by two conclusions 1 and II. You have to take the two or three given Statements to be true and then decide which of the given conclusions logically follows from the two/ three given Statements, disregarding the commonly known fa

Statements:

Some water is cold.

No cold is milk.

Some milk is water.

Conclusions:

I. Some water that is cold is milk,

II. Some milk that is water is cold.

Solution: No cold is milk. Hence, neither conclusion I nor II follow

QUESTION: 49

Among M, N, P, R and T each one has secured different marks in an examination. R secured more marks than M and T. N secured less marks than P. Who among them secured third highest marks?

Solution: R > M, T

P > N

There is no information about relationship between marks obtained by P and R. Hence we cannot determine who secured third highest marks

QUESTION: 50

How many such pairs of letters are there in the word JUMPING each of which has as many letters between them in the word as in the English alphabet?

Solution: I & G and P & N form such pairs where there is one letter between them as in the English alphabet

QUESTION: 51

The questions below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage. It is certain that at least as many migratory birds fly through Hilden every fall as fly through Paluska. The conclusion above follows logically from which one of the following statements?

Solution: (A) No. We are not given any information as to how average snowfall might impact migratory bird flight patterns.

(B) No. We don’t know whether migratory birds are susceptible to the disease or if they might in fact be carriers of the disease. If they are carriers of the disease, then the fact that the disease has been diagnosed in Paluska would not necessarily affect the levels of migratory birds flying through either Hilden or Paluska.

(C) Yes. If Paluska is a town in Hilden County, then birds that fly through Paluska are also flying through Hilden County. So at least as many birds fly through Hilden as fly through Paluska. The following diagram might be helpful in conceptualizing this problem.

(D) No. Knowing that more natural predators have been reported in Hilden does not verify that there actually are more predators in Hilden. Furthermore, we don’t know the sizes of Hilden and Paluska. If Paluska is very small and Hilden is very large, the fact that more predators have been sighted in Hilden would not be significant to this passage. (E) No. Again, while population density might impact migratory bird patterns, we don’t know how big Paluska and Hilden are. If Holden's area exceeds Paluska’s area significantly, the fact that Holden has a bigger population might not affect the numbers of migratory birds that fly through each place.

QUESTION: 52

The questions below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage. Over the last 20 years, psychologists have studied the effect of television viewing on the subsequent levels of violent behavior by young adults. The researchers studied children between the ages of 10 and 15 and found that those children who viewed an average of 6 hours or more of television daily were over four times as likely to be arrested for violent crimes when they were young adults than those young adults who as children watched less than 2 hours of television daily. Therefore, researchers concluded that television viewing causes increased levels of violent activity in young adults.

Which of the following would indicate a flaw in the researcher’s conclusion?

Solution: This argument claims that a causal relationship exists between television viewing and arrest levels of young adults because the two situations are correlated. However, the argument does not rule out the possibility that both of these situations may be caused by a third, independent event. The answer is (C). The other choices may all be true, but they do not impact the researchers’ conclusion.

QUESTION: 53

The questions below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage. The math professor’s goals for classroom honesty and accurate student assessment were founded upon his belief that the fear of punishment and corresponding loss of privileges would make students think twice or even three times before cheating on exams, thus virtually eliminating cheating in his classroom. In order for this atmosphere to prevail, the students had to believe that the consequences for cheating were severe and that the professor had the means to discover cheaters and enforce the punishment against them. If the statements contained in the preceding passage are true, which one of the following can be properly inferred?

Solution: A conclusion for this argument is requested. In order to accurately assess his students on exams, the professor desires to eliminate cheating from his classroom. He believes that a tough policy on cheating will deter students from cheating. Therefore, he is more likely to reach his goal if he announces his policy on cheating and makes it known that he will track down cheaters and punish them. The answer is (D).

QUESTION: 54

In the following question, one statement is followed by two possible implications. Study the statements and mark one of the following answer choices:

He that runs fast will not run long.

1. Running exhausts a person.

2. Running fast is not good

Solution: Statement 1 is not implied because all that the statement says is a person who runs fast will not run for a long time. Exhaustion is not implied as a cause. Statement 2 is not implied because the statement does not impose any value judgment on the action of running fast being good or bad

QUESTION: 55

In the following number series only one number is wrong. Find out the wrong number

15 17 16 19 17 20 18 21

Solution: 15 + 3 = 18

18 - 2 = 16

16 + 3 = 19

19 - 2 = 17

17 + 3 = 20

20 - 2 = 18

18 + 3 = 21

Hence, 17 is the wrong number in the series

QUESTION: 56

Directions for Questions: Study the following information to answer the given questions: Twelve people are sitting in two parallel rows containing six people each, in such a way that there is an equal distance between adjacent persons. In row-1 P, Q, R, S, T and V are seated and all of them are facing South. In row-2 A, B, C, D, E and F are seated and all of them are facing North. Therefore, in the given seating arrangement each member seated in a row faces another member of the other row. S sits third to right of Q. Either S or Q sits at an extreme end of the line. The one who faces Q sits second to right of E. Two people sit between B and F. Neither B nor F sits at an extreme end of the line. The immediate neighbour of B faces the person who sits third to left of P. R and T are immediate neighbours of each other. C sits second to the left of A. T does not face the immediate neighbour of D.

Who amongst the following sit at extreme ends of the rows?

Solution: Based on the data given, the final arrangement will be

P and D sit at extreme ends of the rows

QUESTION: 57

Directions for Questions: Study the following information to answer the given questions: Twelve people are sitting in two parallel rows containing six people each, in such a way that there is an equal distance between adjacent persons. In row-1 P, Q, R, S, T and V are seated and all of them are facing South. In row-2 A, B, C, D, E and F are seated and all of them are facing North. Therefore, in the given seating arrangement each member seated in a row faces another member of the other row. S sits third to right of Q. Either S or Q sits at an extreme end of the line. The one who faces Q sits second to right of E. Two people sit between B and F. Neither B nor F sits at an extreme end of the line. The immediate neighbour of B faces the person who sits third to left of P. R and T are immediate neighbours of each other. C sits second to the left of A. T does not face the immediate neighbour of D.

Who amongst the following faces S?

Solution: Based on the data given, the final arrangement will be

QUESTION: 58

Directions for Questions: Study the following information to answer the given questions: Twelve people are sitting in two parallel rows containing six people each, in such a way that there is an equal distance between adjacent persons. In row-1 P, Q, R, S, T and V are seated and all of them are facing South. In row-2 A, B, C, D, E and F are seated and all of them are facing North. Therefore, in the given seating arrangement each member seated in a row faces another member of the other row. S sits third to right of Q. Either S or Q sits at an extreme end of the line. The one who faces Q sits second to right of E. Two people sit between B and F. Neither B nor F sits at an extreme end of the line. The immediate neighbour of B faces the person who sits third to left of P. R and T are immediate neighbours of each other. C sits second to the left of A. T does not face the immediate neighbour of D.

How many persons are seated between V and R?

Solution: Based on the data given, the final arrangement will be

two persons are seated between V and R

QUESTION: 59

Directions for Questions: Study the following information carefully and answer the given questions: Seven friends A, B, C, D, E, F and G studied in colleges X, Y and Z and are currently in different professions namely, Medicines, Fashion designing, Engineering, Business, Acting, Teaching and Architecture (not necessarily in the same order). At least two and not more than three friends had studied in the same college. C is an architect and studied in college Y. E is not a businessman. Only G amongst the seven friends studied in college X along with E. F is an engineer and did not study in college Y. B is an actor and did not study in the same college as F. A did not study in college Z. Those who studied in college X are neither Fashion Designers nor teachers. None of those who studied in college Y is a teacher.

Which of the following groups represents the students of college Y?

Solution: 7 students can go to 3 colleges with at least 2 in each and max of 3 in each in only way : 2,2,3 - 2 students each to 2 colleges, 3 students to the 3rd college.

C -- College Y and Architect. G, E went to college X. And no one else went to college X.

F -- Engineer. Since he did not study in Y, and cant goto X, he must be from Z.

B -- Actor. He is not from the same college as F -- So he cant be from Z or X - so he is from Y.

A -- Since he did not study in Z, and cant be from X, he is from Y.

Since we have A,B,C from Y, and that 2 students each goto 2 colleges, 3 students to the 3rd college, we have that D has to goto Z.

Using this info we have the following table:

Now, we have the professions left as: Medicine, Fashion Designer, Businessman, Teaching. College X has to be Medicine and Businessman as per the question X has G, E and we are given E is not a Businessman.

So E - Medicine, G - Businessman. A went to Y - so he can't be a teacher - so he has to be Fashion Designer And, D the teacher. Using this, we have the table below.

A, B and C are students of college Y

QUESTION: 60

Directions for Questions: Study the following information carefully and answer the given questions: Seven friends A, B, C, D, E, F and G studied in colleges X, Y and Z and are currently in different professions namely, Medicines, Fashion designing, Engineering, Business, Acting, Teaching and Architecture (not necessarily in the same order). At least two and not more than three friends had studied in the same college. C is an architect and studied in college Y. E is not a businessman. Only G amongst the seven friends studied in college X along with E. F is an engineer and did not study in college Y. B is an actor and did not study in the same college as F. A did not study in college Z. Those who studied in college X are neither Fashion Designers nor teachers. None of those who studied in college Y is a teacher.

Who amongst the following is in the profession of Medicines?

Solution: 7 students can go to 3 colleges with at least 2 in each and max of 3 in each in only way : 2,2,3 - 2 students each to 2 colleges, 3 students to the 3rd college. C -- College Y and Architect. G, E went to college X. And no one else went to college X.

F -- Engineer. Since he did not study in Y, and cant goto X, he must be from Z.

B -- Actor. He is not from the same college as F -- So he cant be from Z or X - so he is from Y.

A -- Since he did not study in Z, and cant be from X, he is from Y. Since we have A,B,C from Y, and that 2 students each goto 2 colleges, 3 students to the 3rd college, we have that D has to goto Z. Using this info we have the following table:

Now, we have the professions left as: Medicine, Fashion Designer, Businessman, Teaching. College X has to be Medicine and Businessman as per the question X has G, E and we are given E is not a Businessman. So E - Medicine, G - Businessman. A went to Y - so he can't be a teacher - so he has to be Fashion Designer And, D the teacher. Using this, we have the table below.

E is in the profession of medicines

QUESTION: 61

Directions for Questions: Study the following information carefully and answer the given questions: Seven friends A, B, C, D, E, F and G studied in colleges X, Y and Z and are currently in different professions namely, Medicines, Fashion designing, Engineering, Business, Acting, Teaching and Architecture (not necessarily in the same order). At least two and not more than three friends had studied in the same college. C is an architect and studied in college Y. E is not a businessman. Only G amongst the seven friends studied in college X along with E. F is an engineer and did not study in college Y. B is an actor and did not study in the same college as F. A did not study in college Z. Those who studied in college X are neither Fashion Designers nor teachers. None of those who studied in college Y is a teacher.

Who amongst the following is a teacher?

Solution: 7 students can go to 3 colleges with at least 2 in each and max of 3 in each in only way : 2,2,3 - 2 students each to 2 colleges, 3 students to the 3rd college. C -- College Y and Architect. G, E went to college X. And no one else went to college X.

F -- Engineer. Since he did not study in Y, and cant goto X, he must be from Z.

B -- Actor. He is not from the same college as F -- So he cant be from Z or X - so he is from Y.

A -- Since he did not study in Z, and cant be from X, he is from Y.

Since we have A,B,C from Y, and that 2 students each goto 2 colleges, 3 students to the 3rd college, we have that D has to goto Z. Using this info we have the following table:

Now, we have the professions left as: Medicine, Fashion Designer, Businessman, Teaching. College X has to be Medicine and Businessman as per the question X has G, E and we are given E is not a Businessman. So E - Medicine, G - Businessman. A went to Y - so he can't be a teacher - so he has to be Fashion Designer And, D the teacher. Using this, we have the table below.

D is teacher

QUESTION: 62

In making decisions about important questions, it is desirable to be able to distinguish between 'strong' arguments and 'weak' arguments. 'Strong' arguments are those which are both important and directly related to the question. 'Weak' arguments are those which are of minor importance and also may not be directly related to the question or may be related to a trivial aspect of the question. Statement: Should the institutes of higher learning in India like IITs and IIMs be made totally free from govt. control?

Arguments: I. Yes, such institutes in the developed countries are run by non-govt. agencies.

II. No, govt. needs to regulate functions of these institutes for national interest

III. No, these institutes are not capable of making policy decisions for smooth functioning.

Solution: Because in the developed countries these kinds of institutes are run by non-government agencies is not a strong argument to make them totally free from government control in India Giving total free control to these institutes does not compromise national interest. Hence, argument II is also not strong These prestigious institutes are capable of taking policy decisions for smooth functioning. Hence, none of the arguments are strong

QUESTION: 63

In making decisions about important questions, it is desirable to be able to distinguish between 'strong' arguments and 'weak' arguments. 'Strong' arguments are those which are both important and directly related to the question. 'Weak' arguments are those which are of minor importance and also may not be directly related to the question or may be related to a trivial aspect of the question. Statement: Should the parliament elections in India be held on a single day throughout the country?

Arguments: I. Yes, this is the only way to handle such elections.

II. Yes, this will help the commission to concentrate on a single day for election related issues.

III. No, some other countries hold such elections spread over several days.

Solution: Argument I is weak because this is not the only way to handle such elections Given the large electoral population and geography of India, having elections on a single day does not help the commission to concentrate on election related issues. Hence, argument II is also weak. Comparing with other countries about the elections is not a strong argument as the factors and challenges of different countries' elections will be different.

QUESTION: 64

The questions below are based on the reasoning contained in brief statements or passages. For some questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question. You should not make assumptions that are by common sense standards implausible, superfluous, or incompatible with the passage. Thirty years ago, deer and elk in selected parts of the Rocky Mountains were first discovered with a condition known as wasting disease. In 1970, two percent of the deer and elk killed by hunters were diagnosed with the disease. In 1995, that percentage had grown to six percent. This increase in the incidence of the disease proves that wasting disease has become much more prevalent in the last twenty-five years. If true, which one of the following selections most seriously weakens the author’s conclusion?

Solution: (A) No. The apparent fact that wasting disease does not afflict moose or bighorn sheep has no relevance to the incidence of the disease in deer and elk.

(B) Yes. If wasting disease makes deer and elk more lethargic and less able to escape from hunters, then this could account for the increased incidence of the disease in deer and elk killed by hunters, but it would not necessarily mean that the incidence of the disease has increased in the general deer and elk population.

(C) No. Simply because the disease has spread geographically does not mean its incidence in the deer and elk population in the Rocky Mountains has increased.

(D) No. This statement could actually strengthen the argument because it suggests that the disease could actually be more prevalent than reported. Hunters may not be reporting their kills to avoid the risk of losing their meat if wasting disease is diagnosed in their animals. If all animals were reported, a greater incidence of the disease might be found.

(E) No. This statement also strengthens the argument because it suggests that more cases of wasting disease would be discovered if diagnoses could be made within a twenty-four hour period after the animals’ death.

QUESTION: 65

Directions for Questions: In each question below is given a group of letters followed by four combinations of digits/symbols numbered (1), (2), (3) and (4). You have to find out which of the combinations correctly represents the group of letters based on the following coding system and the conditions and mark the number of that combination as your answer. If none of the combinations correctly represents the group of letters, mark (5) i.e. 'None of these' as your answer.

Conditions: (i) If the first letter is a consonant and the last letter is a vowel, their codes are to be interchanged.

(ii) If both the first and the last letters are vowels, both are to be coded as *.

(iii) If both the first and the last letters consonants, both are to be coded as the code for the last letter. DPEHQA

Solution: D → 7

P → %

E → ©

H → #

Q → 4

A → @

Condition (i) is applied here

Hence, the code is '@%©#47' Option 2

QUESTION: 66

Directions for Questions: In each question below is given a group of letters followed by four combinations of digits/symbols numbered (1), (2), (3) and (4). You have to find out which of the combinations correctly represents the group of letters based on the following coding system and the conditions and mark the number of that combination as your answer. If none of the combinations correctly represents the group of letters, mark (5) i.e. 'None of these' as your answer.

Conditions: (i) If the first letter is a consonant and the last letter is a vowel, their codes are to be interchanged.

(ii) If both the first and the last letters are vowels, both are to be coded as *.

(iii) If both the first and the last letters consonants, both are to be coded as the code for the last letter. KEMRDF

Solution: K → 1

E → ©

M → $

R → 3

D → 7

F → 9

Condition (iii) is applied

Hence, the code is '9©$379'

QUESTION: 67

Find the next term in the following series: ELFA, GLHA, ILJA, ?

Solution: L and A are static First and third letters are alphabets in increasing order Hence, next term is KLLA

QUESTION: 68

Find the next term in the following series: SCD, TEF, UGH, ?

Solution: First letter increases by 1 Second and third letter follows alphabet series Hence, next term is VIJ

QUESTION: 69

Pointing to a girl, Mihir said "She is the only daughter of my grandfather's only child". How is the girl related to Mihir?

Solution: Mihir's grandfather's only child will be his father or mother. Hence, the girl Mihir is pointing to is his sister

QUESTION: 70

P's father is Q's son. M is the paternal Uncle of P and N is the brother of Q. How is N related to M?

Solution:

Hence, N is M’s uncle

QUESTION: 71

Directions for Questions: Study the following information carefully and answer the questions given below: Following are the conditions for selecting ManagerAccounts in an organisation: The candidate must

(i) be at least 25 years and not more than 35 years as on 01.01.2010.

(ii) be a graduate in Commerce with at least 55 per cent marks.

(iii) be a post graduate in Commerce with at least 60 per cent marks.

(iv) have post qualification work experience of at least six years in the Accounts Department of an organisation.

(v) have secured at least 45 per cent marks in the personal interview. In the case of a candidate who satisfies all the conditions EXCEPT (a) at (ii) above, but is a MBA-Finance with at least 65 per cent marks, the case is to be referred to GMAccounts. (b) at (iv) above, but is a CA/ ICWA and has work experience of at least one year in an organisation, the case is to be referred to the Executive Director. In each question below, details of one candidate are provided. You have to take one of the following courses of actions based on the information provided and the conditions and sub- i conditions given above and mark the number of that course of action as your | answer. You are not to assume anything other than the information provided in each question. All these cases are given to you as on 01.01.2010. Sarnir Malhotra was born on 25th July, 1982. He has been working in the Accounts Department of an organisation for the past six years after obtaining his M.Com degree with 58 per cent marks. He has secured 70 per cent marks in B.Com. and 60 per cent marks in personal interview.

Solution: Samir Malhotra does not satisfy condition (iii). Therefore, he cannot be selected.

QUESTION: 72

Directions for Questions: Study the following information carefully and answer the questions given below: Following are the conditions for selecting ManagerAccounts in an organisation: The candidate must

(i) be at least 25 years and not more than 35 years as on 01.01.2010.

(ii) be a graduate in Commerce with at least 55 per cent marks.

(iii) be a post graduate in Commerce with at least 60 per cent marks.

(iv) have post qualification work experience of at least six years in the Accounts Department of an organisation.

(v) have secured at least 45 per cent marks in the personal interview. In the case of a candidate who satisfies all the conditions EXCEPT (a) at (ii) above, but is a MBA-Finance with at least 65 per cent marks, the case is to be referred to GMAccounts. (b) at (iv) above, but is a CA/ ICWA and has work experience of at least one year in an organisation, the case is to be referred to the Executive Director. In each question below, details of one candidate are provided. You have to take one of the following courses of actions based on the information provided and the conditions and sub- i conditions given above and mark the number of that course of action as your | answer. You are not to assume anything other than the information provided in each question. All these cases are given to you as on 01.01.2010. Sudha Agrawal was born on 5h January, 1978. She has been working in the Accounts Department of an organisation for the past seven years after obtaining her MBA in Finance with 70 per cent marks. She has secured 68 per cent marks in B.Com. and 52 per cent marks in personal interview.

Solution: There is no information about condition (iii). Hence, the given data is not adequate to take a decision

QUESTION: 73

In a university president election, the three contestants were Govind, Harsh and Ishant. Students of six colleges, A, B, C, D, E and F voted in the elections. The below pie charts show the percentage of votes received by the candidates from the 6 colleges:

The number of votes received by Govind, Harsh and Ishant from college F are 92, 55 and 140 respectively.

What is the difference between the highest and the least number of votes cast to a candidate by students of college B?

Solution: Govind received 18.4% or 92 votes from college F.

Hence total votes received by him = 92 x 100/18.4 = 500 Similarly, total votes received by Harsh = 55 x 100/10 = 550

And, total votes received by Ishant = 140 x 100/25 = 560 Now we know the total number of votes received by each of the three candidates. Using the respective pie charts we can calculate the number of votes received by each of the candidates from every college.

We get the below table:

Highest votes for a candidate from college B - 88 (Harsh) Least votes for a candidate from college B - 83 (Govind) Required difference = 88-83 = 5

QUESTION: 74

In a university president election, the three contestants were Govind, Harsh and Ishant. Students of six colleges, A, B, C, D, E and F voted in the elections. The below pie charts show the percentage of votes received by the candidates from the 6 colleges:

The number of votes received by Govind, Harsh and Ishant from college F are 92, 55 and 140 respectively.

What percent of students from college C voted for Harsh?

Solution: Govind received 18.4% or 92 votes from college F.

Hence total votes received by him = 92 x 100/18.4 = 500 Similarly, total votes received by Harsh = 55 x 100/10 = 550

And, total votes received by Ishant = 140 x 100/25 = 560 Now we know the total number of votes received by each of the three candidates. Using the respective pie charts we can calculate the number of votes received by each of the candidates from every college.

We get the below table:

Required % = 121/258 x 100 = 46.90%

QUESTION: 75

In a university president election, the three contestants were Govind, Harsh and Ishant. Students of six colleges, A, B, C, D, E and F voted in the elections. The below pie charts show the percentage of votes received by the candidates from the 6 colleges:

The number of votes received by Govind, Harsh and Ishant from college F are 92, 55 and 140 respectively.

Which of the following statements is true?
Solution: Govind received 18.4% or 92 votes from college F.

Hence total votes received by him = 92 x 100/18.4 = 500 Similarly, total votes received by Harsh = 55 x 100/10 = 550

And, total votes received by Ishant = 140 x 100/25 = 560 Now we know the total number of votes received by each of the three candidates. Using the respective pie charts we can calculate the number of votes received by each of the candidates from every college.

We get the below table:

Govind did not receive more than 100 votes from any of the colleges.

Rest of the statements are false.

QUESTION: 76

In a university president election, the three contestants were Govind, Harsh and Ishant. Students of six colleges, A, B, C, D, E and F voted in the elections. The below pie charts show the percentage of votes received by the candidates from the 6 colleges:

The number of votes received by Govind, Harsh and Ishant from college F are 92, 55 and 140 respectively.

80% of the votes casted by the students of college D were valid and hence were counted. The number of voters in college E was 20 more than the number of voters in college D. What percent of the votes from college E were invalid?
Solution: Govind received 18.4% or 92 votes from college F.

Hence total votes received by him = 92 x 100/18.4 = 500 Similarly, total votes received by Harsh = 55 x 100/10 = 550

And, total votes received by Ishant = 140 x 100/25 = 560 Now we know the total number of votes received by each of the three candidates. Using the respective pie charts we can calculate the number of votes received by each of the candidates from every college.

We get the below table:

Govind did not receive more than 100 votes from any of the colleges.

Total voters from college D = 240 x 100/80 = 300

Hence, total voters from college E = 320

No of invalid votes = 320 - 288 = 32

Required % = 32/320 x 100 = 10%

QUESTION: 77

The table below shows the number of 3 phase connections, single phase connections and units of electricity consumed in a city:

Across all the years, which year had the maximum average units consumed by 3 phase connections?
Solution: 2011 had the maximum average units consumed.

QUESTION: 78

The table below shows the number of 3 phase connections, single phase connections and units of electricity consumed in a city:

Which year showed the largest increase in total number of 3 phase and single phase connections combined?

Solution: From the table, we notice 2011 to 12 saw the largest rise.

QUESTION: 79

The table below shows the number of 3 phase connections, single phase connections and units of electricity consumed in a city:

In how many years was the average consumption by single phase more than that of 3 phase?
Solution: From the table, we notice 2011 to 12 saw the largest rise.

In all years, average single phase consumption was lower than 3 phase.

QUESTION: 80

The table below shows the number of 3 phase connections, single phase connections and units of electricity consumed in a city:

If the number of 3 phase connections go up by 12% in 2015, and units consumed by 3 phase goes up by 18%, what is the percentage rise in average consumption of 3 phase motors from 2014 to 15?
Solution: 3 phase Average in 2014 = 28,000/6,000 = 4.67 2015: connections = 6000 x 1.12, units = 28000x1.18

Average = 4.67x 1.18/1.12

So rise = 4.67 (1.18/1.12 - 1) = 4.67 (0.06/1.12)

Percentage Rise = 0.06 x 100 /1.12 = 5.35%

QUESTION: 81

These questions are based on the price fluctuations of four commodities - arhar, pepper, sugar, and gold during February to July 1999 as described in the figures below:

Price volatility (PV) of a commodity is defined as follows: PV = (highest price during the period- lowest price during the period)/ average price during the period Average price = (highest price + lowest price + ending price + beginning price) / 4 Price change of a commodity is defined as the absolute difference in ending and beginning prices expressed as at the beginning.

What is the commodity with the highest price changes?

Solution:

Arhar= [2150-1750 /1750 ]*100 = 22.85%

Pepper=[19000-18400 /18400 ]*100 = 3.26%

Sugar=[ 1435-1430 /1430 ]*100 =0.35%

Gold=[ 3850-4220 /4220 ]*100= -8.76

So, it is the highest for Arhar.

QUESTION: 82

These questions are based on the price fluctuations of four commodities - arhar, pepper, sugar, and gold during February to July 1999 as described in the figures below:

Price volatility (PV) of a commodity is defined as follows: PV = (highest price during the period- lowest price during the period)/ average price during the period Average price = (highest price + lowest price + ending price + beginning price) / 4 A fund manager with an investment company invested 25% of his funds in each of the four commodities of the period. He sold the commodities at the end of the period. His investments in the commodities resulted in

Solution:

Arhar= [2150-1750 /1750 ]*100 = 22.85%

Pepper=[19000-18400 /18400 ]*100 = 3.26%

Sugar=[ 1435-1430 /1430 ]*100 =0.35%

Gold=[ 3850-4220 /4220 ]*100= -8.76

Average = (22.85 + 3.26 + 0.35 - 8.76)/4 = 4.42%

QUESTION: 83

These questions are based on the price fluctuations of four commodities - arhar, pepper, sugar, and gold during February to July 1999 as described in the figures below:

Price volatility (PV) of a commodity is defined as follows: PV = (highest price during the period- lowest price during the period)/ average price during the period Average price = (highest price + lowest price + ending price + beginning price) / 4

What is the commodity with the highest price volatility?
Solution:

QUESTION: 84

These questions are based on the price fluctuations of four commodities - arhar, pepper, sugar, and gold during February to July 1999 as described in the figures below:

Price volatility (PV) of a commodity is defined as follows:

PV = (highest price during the period- lowest price during the period)/ average price during the period Average price = (highest price + lowest price + ending price + beginning price) / 4

The price volatility of the commodity with the highest PV during the February - July period is approximately equal to
Solution:

Arhar = 0.42 ~= 40%

QUESTION: 85

Pie charts show percentage of cars sold over 5 years of 5 models.

How many cars of i22 were sold over the 5 years?

Solution:

From the table, i22 across 5 years = 990.

QUESTION: 86

Pie charts show percentage of cars sold over 5 years of 5 models.

The percentage of x45 cars sold from 2011 to 2013 is what percentage of the total number of cars sold during the same period?
Solution:

x45 2011 to 2013 = 500

Overall 2011 to 2013 = 272

Percentage = 18.4%

QUESTION: 87

Pie charts show percentage of cars sold over 5 years of 5 models.

What percentage of cars sold over the 5 year period was D500?
Solution:

D500 = 560

Total = 4020

Percentage = 560 x 100/4020 = 13.9%

QUESTION: 88

Pie charts show percentage of cars sold over 5 years of 5 models.

The cost of a single D500 in 2013 was 7 Lakhs, single M77 was 13 Lakhs and single i22 was 3 Lakhs. What was the total revenue(in Lakhs) made from selling these 3 cars in 2013? (Revenue = Cost per car x Number of Cars of that type)

Solution:

Total = 7 x 120 + 13 x 200 + 3 x 400 = 4640 Lakhs

QUESTION: 89

The sides of a rhombus ABCD measure 2 cm each and the difference between two angles is 90° then the area of the rhombus is

Solution:

x + y = 90o

It is given that,

2x - 2y = 90o, x - y = 45o

Solving, we get

X = 67.5o and y = 22.5o

Consider triangle ABC

BC/Sin X = AB/Sin Y = 2/Sin 90

Therefore, BC = 1.847

AB = 0.765

Area of triangle ABC = ½ (1.847) (0.765) = 0.764

Area of rhombus = 4 X 0.764 = 2.825

QUESTION: 90

Let the consecutive vertices of a square S be A,B,C &D. Let E,F & G be the mid-points of the sides AB, BC & AD respectively of the square. Then the ratio of the area of the quadrilateral EFDG to that of the square S is nearest to

Solution: Quadrilateral EFDG can be split into 2 triangles i.e. GEF and GDF Area of triangle GEF is half the area of AGFB [since all the 4 triangles in AGFB are similar] Area of triangle GDF is half the area of GDCF Hence, the area of quadrilateral EGDF is half the area of square ABCD

QUESTION: 91

Our milkman, travelling at a uniform speed on his bicycle, delivers milk at my place every day at 6a.m. On one particular day, when we wanted milk early, I started on my motorcycle at 5.30 a.m. Travelling at a uniform speed, I met the milk man on the way, collected the milk and returned home at 5.40 a.m. The ratio of my speed to that of the milk man is

Solution: Since Uniform speed, time taken to go = time taken to return = 10/2 = 5 min.

Hence, Time taken by milkman to cover that distance = 6:00 5:35 = 25 min.

ratio of speed: 1/5 : 1/25 => 5 : 1. Hence (d)

QUESTION: 92

A father runs after his son, who is 1000 meters ahead. The father runs at a speed of 1 kilometer every 8 minutes, and the son runs at a speed of 1 kilometer every 12 minutes. How much distance has the son covered at the point when the father overtakes him?

Solution: Time taken is same for both father and son

Let x be the distance son travelled before being overtaken by his father

Time taken by son = x/5 km/hour

Time taken by father = (1000 + x)/7.5 km/hr

Since, time taken is same x/5 = (1000 + x)/7.5 or x = 2000m

QUESTION: 93

Two persons agree to meet on January 9, 2005 between 6.00 P.M. to 7.00 P.M., with the understanding that each will wait no longer than 20 minutes for the other. What is the probability that they will meet?

Solution: They will meet if A comes between 6 PM and 6:40 PM

And B comes between 6:20 PM and 7:00 PM

They will also meet when the above case is reversed

Hence, the probability of meeting = (40/60)2 = 4/9

QUESTION: 94

Sachin, Rahul and 6 other people sit around a circular table. Find the number of ways that Sachin and Rahul are not next to each other.

Solution: Eight people can be seated around a circular table in 7! Ways.

To find the number of arrangements with Sachin and Rahul sitting together, we consider them as one entity. Then there are 7 people who can be seated in 6! ways.

Sachin and Rahul can sit in 2 ways amongst themselves.

So, the number of arrangements in which the two are not together = 7! - 2 ⨯6! = 3600 ways

QUESTION: 95

Two unbiased coins are tossed together five times. What is the probability that heads turn up on both the coins for three times?

Solution: The probability that heads turn up when two coins are tossed = (1/2)(1/2) = ¼

∴ The probability that three times heads turn up on both the coins

= 5C3 (1/4)3 (1-1/4)2

= (10) (1/64)(9/16) = 45/512

QUESTION: 96

Integers m and n are chosen at random between 1 and 100 (both included). The probability that the number 7m + 7n is divisible by 5 is:

Solution: For a number to be divisible by 5, the last digit has to be 0/5.

Last digits of powers of 7 are 7,9,3,1

Note that the last digit cannot be 5 by taking any 2 of these together.

Only possibility is the last digit is 0 : This can be done if the last digits of the 2 numbers are 7/3 or 1/9.

Last digit = 7 can be chosen in 25 ways (71, 75, ... 797 )

Last digit = 3 can be chosen in 25 ways (73, 77, ... 799 )

This gives us a total of 25x25 cases.

Last digit = 1 can be chosen in 25 ways (74, 78, ... 7100 )

Last digit = 9 can be chosen in 25 ways (72, 76, ... 798 )

This gives us a total of 25x25 cases.

So total cases = 25 x 25.

But we can interchange m and n, which means the total number of cases where the number will be divisible by 5 = 2 x (25x25 + 25x25) = 4 x 25 x 25.

Total number of ways of choosing m and n = 100 x 100

Probability = (4x25x25)/(100x100) = 1/4.

QUESTION: 97

Each of the questions below consists of a question and three statements numbered I, II and III given below it. You have to decide whether the data provided in the statements are sufficient to answer the question: What is the average age of Rahul, Ravi and Jay?

I. Ratio of present ages of Rahul and Ravi is 8:5 and ratio of ages of Rahul to Jay 12 years ago is 3:4.

II. Twelve years ago the age of Rahul was twice the age of Ravi and the average age of Rahul to Ravi after 15 years is 54 years.

III. Sum of ages of Rahul and Jay after twenty years is 148 years and the ratio of ages of Rahul and Jay after 15 years is 21:25.

Solution: From I and II

Let the present age of Rahul be 8Y

And present age of Ravi be 5Y

Then,

Age of Rahul 12 years ago = (8Y - 12)

Age of Ravi 12 years ago = (5Y - 12)

Thus,

(8Y - 12) = 2(5Y - 12)

2Y = 12

Y = 6

QUESTION: 98

A person borrowed some money at the rate of 10% simple interest. At the end of the first year he paid Rs 10000 and the rest of the amount he paid in the next year. The rate of interest for the 2nd year is 8%. The ratio of the interest which he paid in 1st year and in 2nd year is 3:2. Find the amount which he borrowed.

Solution: Let the amount borrowed be Rs P.

Simple interest on Rs P for 1 year @ 10% = Rs 0.1P

After 1 year, he pays Rs 10000. So the remaining amount

= P + 0.1P - 10000

= Rs (1.1P - 10000)

S.I on Rs (1.1P - 10000) for 1 year @ 8% = Rs (1.1P -10000) X 8/100

As per the question the ratio of interest obtained on 1st and 2nd year is 3:2.

Hence,

⇒ P = Rs 37500

QUESTION: 99

In the following questions, two statements numbered I and II are given. On solving them, we get quantities I and II respectively. Solve for both the quantities and choose the correct option.

Quantity I: A boat goes from point P to Q downstream having a distance 120 m and comes back to point T which is in the middle of P and Q in 6 secs then what is the speed of the boat(km/hr) if the speed of the stream is 10 m/sec?

Quantity II: The ages of Raju and Rohan 5 years ago is in the ratio 3:2 and after 15 years the ratio of ages of Raju to Rohan is 17:13 then what is the sum of the ages (years) of Raju and Rohan 9 years from now?

Solution: Quantity I

Let the speed of the boat be Y m/sec.

Then,

Upstream speed = (Y - 10) m/sec.

Downstream speed = (Y + 10)

Thus,

120/(Y + 10) + 60/(Y - 10) = 6

120Y - 1200 + 60 Y + 600 = 6(Y + 10)(Y - 10)

180Y -600 = 6(Y2 - 100)

6Y2 - 180Y = 0

6Y(Y - 30)

Either Y = 0 or Y = 30

The speed of the boat cannot be zero during the journey.

Speed of boat = 30 m/sec.

Required speed = (30 x 18/5) = 108 km/hr

Quantity II:

Let the ages of Raju and Rohan 5 years ago be 3Y and 2Y respectively.

Then,

(3Y + 20)/(2Y + 20) = 17/13

39Y + 260 = 34Y + 340

5Y = 80

Y = 16

Present age of Raju = (3 x 16) + 5 = 53 years

Present age of Rohan = (2 x 16) + 5 = 37

Required sum = (53 + 9) + (37 + 9) = 108 years

QUESTION: 100

In the following question, two statements numbered I and II are given. On solving them, we get quantities I and II respectively. Solve for both the quantities and choose the correct option.

Quantity I: Ratio of the curved surface area and the total surface area of a right circular cylinder is 2:5 and the area of base is 1386 cm2, then what is the volume (cm3) of the cylinder?

Quantity II: What is the surface area (cm2) of a cube having the side equal to the length of rectangular field having area 4205 cm2 and breadth of field being 25% more than its length?

Solution: Quantity I

Curved surface area = 2ϖRH

Total surface area = 2ϖR(R + H)

Thus,

2ϖRH/2ϖR(R + H) = ⅖

H/(R + H) = 2/5 ...... (i)

Area of the base = ϖR2 = 1386

R2 = (1386 x 7)/22 = 441

Radius = 21 cm

Putting value of R in (i) we get

H/(21 + H) = 2/5

5H = 42 + 2H

H = 14 cm

Thus, volume = ϖR2H = (22/7 x 21 x 21 x 14)

Volume = 19404 cm3.

Quantity II:

Let the length be Y centimeter

Then, breadth = 1.25Y

Area = (L x B) = 4205

Putting value of L and B we get:

(Y x 1.25Y) = 4205

Y2 = 3364

Y = 58

Thus, length = 58 cm

Side of the cube = 58 cm

Surface area of the cube = 6Side2

Surface area = (6 x 58 x 58) = 20184 cm2.

QUESTION: 101

From any two numbers x and y, we define x* y = x + 0.5y - xy. Suppose that both x and y are greater than 0.5. Then x*x

Solution: x*x = x + 0.5x - x2

y*y = y + 0.5y - y2

It is given that,

x*x

1.5x - x2 < 1.5y - y2

Y2 - x2 < 1.5(y-x)

(y+x) (y-x) < 1.5(y - x)

To maintain the same inequality, the terms in the above expression should be positive.

Hence, y > x

(y + x) < 1.5

Since both x and y is greater than 0.5, and (x + y) < 1.5

Then 1 > y > x

QUESTION: 102

My father had a certain number of toffees. When he distributed them amongst all his grandchildren giving 4 toffees to each child, I found that my daughter Ramya being the youngest got only 3. Instead, if he gave 3 toffees to each, he would have been left with 7 toffees. How many more toffees should be bought to give 5 toffees to each of his grandchildren?

Solution: Let my father has x grandchildren

4x - 1 = 3x + 7, if x = 8

No. of toffees = 4 x 8 - 1 = 31

Reqd. no. = 8 x 5 = 40 Hence,

Purchase = 9. Hence (c)

QUESTION: 103

The ratio of the salaries of A and B is 8 : 9. If A's salary is increased by 50% and B's salary is reduced by 25%, their ratio becomes 16 : 9. What is the salary of A?

Solution: Let the salaries of A and B be 8y and 9y respectively After the increase

Since there can be more than one solution, we cannot determine the exact salary of A.

QUESTION: 104

A can is full of paint. Out of this, 5 litres are removed and substituted by a thinning liquid. The process is repeated one more time. Now the ratio of paint to thinner is 49 : 15. What is the full capacity of the can?

Solution: We can solve this by using options

Consider option a:

After mixing thinning liquid first time, quantity of paint in can = 15 litres

Quantity of thinning liquid = 5 litres

In the second step, 5 litres from the can is removed i.e. 3.75 litres of paint and 1.25 litres of thinning liquid is removed. After adding 5 litres of thinning liquid

Quantity of paint in can = 11.25 litres

Quantity of thinning liquid = 8.75 litres

Ratio = 11.25 : 8.75 = 45:35 = 9:7

Consider option b:

After mixing thinning liquid first time,

Quantity of paint = 55 litres

Quantity of thinning liquid = 5 litres

After removing 5 litres,

Quantity of paint = 4.5 litres

Quantity of thinning liquid = 0.5 litres

After mixing 5 litres of thinning liquid i.e. second step

Quantity of paint = 50.5 litres

Quantity of thinning liquid = 9.5 litres

Ratio = 50.5 : 9.5 = 101:19

Consider option c: After mixing thinning liquid first time,

Quantity of paint = 35 litres

Quantity of thinning liquid = 5 litres After removing 5 litres

Quantity of paint = 30.625 litres

Quantity of thinning liquid = 4.375 litres

After adding 5 litres of thinning liquid

Quantity of paint = 30.625 litres

Quantity of thinning liquid = 9.375 litres

Ratio = 30.625 : 9.375 = 49:15

QUESTION: 105

Present age of Anand is 47 years and his wife’s age is just 38 years. They have a son 17 years old. When they were married, Anand was exactly one and half times as old as his wife. How many years after they married was their son born?

Solution: Let son was born x years after marriage

47 – 17 – x = (38 – 17 – x) 1.5

30 – x = 31.5 – 1.5x

x = 3

Hence, option (a).

QUESTION: 106
Farah got married 8 years ago. Today her age is times her age at the time of her marriage. At present, her daughter's age is one-sixth of her age. What was her daughter's age 3 years ago?
Solution: Let the daughter age be ‘x’

Then mother’s age = 6x

x=6

Daughter's age 3 years ago

= 6 - 3 = 3 years

QUESTION: 107

A, B and C individually can finish a work in 6, 8 and 15 hours respectively. They started the work together and after completing the work got Rs.94.60 in all. When they divide the money among themselves, A, B and C will respectively get (in Rs.)

Solution: Let the total number of units be 120( LCM of 6, 8 and 15)

Therefore, the amount of work done by A in one hour = 20 units

The amount of work done by B in one hour = 15 units

The amount of work done by C in one hour = 8 units

The ratio of work done by A, B and C = 20 : 15 : 8

Hence, the amount will also b distributed in the same ratio

Hence, A gets = (20/43) X 94.6 = 44

B gets = (15/43) X 94.6 = 33

C gets = (8/43) X 94.6 = 17.6

Hence, option 1

QUESTION: 108

In the following questions, two statements numbered I and II are given. On solving them, we get quantities I and II respectively. Solve for both the quantities and choose the correct option.

Quantity I: Difference between CI and SI for 3 years at the rate of 12% per annum for principal 150000.

Quantity II: Number of students in Navodaya Vidyalaya Delhi during 2013 was 5600 and it changes at a rate of 15% per annum. The number of students during 2015.

Solution: Quantity I

CI = 150000 x (1.12)3 - 150000 = 210739.2 - 150000 = 60739.2

SI = 150000 x 12 x 3/100 = 54000

Difference = Rs 6739.2

Quantity II:

Since the nature of change is not given, the number of students may increase or decrease.

Case 1: when there is increase

Number in 2015 = 5600 x 1.15 x 1.15 = 7406

Case 2: when there is decrease

Number in 2015 = 5600 x 0.85 x 0.85 = 4046

Hence, Relation can't be established.

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