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Indus Insights Practice Test

General Instructions

1. The test contains 4 sections

2. Calculators are allowed in this test

3. The total test duration is 1 hour 30 mins. We haven't timed it to ensure you have enough time to think about each question. Although we strongly suggest you to keep a timer to simulate your performance under time constraint

4. There are sectional as well as a total cut-off for this test

5. There is a single correct answer for each question

6. There is no negative marking

Please note that this is a mock test and differs from the actual written test in terms of number & order of questions, cut offs and marking scheme. The purpose of this test is to help you get an idea of the kind of questions that you may expect in the actual written test and to assess your preparation for the same.

All the best!

General Instructions

1. The test contains 4 sections

2. Calculators are allowed in this test

4. There are sectional as well as a total cut-off for this test

5. There is a single correct answer for each question

6. There is no negative marking

All the best!

Section 1: Problem Solving

This section consists of 10 questions

Section 1: Problem Solving

This section consists of 10 questions

Q1. SuperCards offer two types of cards to its customers. The cost incurred to service the two cards and the fees that the company charges for the two cards is different. Customers always have one or the other type of credit card but not both.
Given:
i. The total number of cards that SuperCards sold this year is same as last year
ii. The fee charged by SuperCards for one of the card has increased by 20% this year while for the other card, it has been reduced by 10% as compared to last year
iii. Cost incurred to service both the cards has increased by 10% this year as compared to last year Which of the following holds true?

SuperCards total profits from cards sold this year have definitely increased

SuperCards total profits from cards sold this year may have increased or remained constant, but not decreased

SuperCards total profits from cards sold this year have remained constant

There is insufficient information to predict if SuperCards profits from cards sold this year have increased, decreased or remained constant

Q2. RainUmb manufactures and sells umbrellas. The umbrella market is relatively stable. As expected, sales depend on demand, and demand depends on weather. There is a 40% chance of a heavy rainy season, in which RainUmb would sell 3,000 umbrellas. There is a 60% chance of a light rainy season, in which they would sell 1,000 umbrellas. The selling price of an Umbrella is INR 2000 and cost of manufacturing an umbrella is INR 700. How many umbrellas should RainUmb manufacture for the coming rainy season, in-order to maximize profits?

1,800

1,000

3,000

None of the above

Q3. Avenging team is a group of superheroes being assembled by country X’s government. If there is an attack on country X by MetaThanos, there is a 60% chance that Spiderguy is a part of Avenging team; if MetaThanos doesn’t attack the chances of Spiderguy being on the team are 40%. The probability of MetaThanos attacking country X is 40%. Given that Spiderguy was part of the Avenging team, probability that MetaThanos attacked is closer to?

0.6

0.5

0.7

0.4

0.8

Q4. FurnitureBuy runs an online advertisement campaign for their business. Currently, it spends INR 1,00,000 on the campaign and 2.5% of the users who see the advertisement make a purchase on their website (conversion rate). They have a new advertisement proposal with double the initial cost, which increases the advertisement visibility (number of users who see the advertisement). If the proposal is accepted, the conversion rate will decrease to 2.0%. Given the amount spent by converted customers is constant in both the scenarios, what should be the minimum increment in visibility of the advertisement to increase the profit margin?

250%

150%

60%

40%

Q5. Two strategies X and Y are employed while buying shares of company Autowheels. Strategy X involves buying same number of shares in month 1 and month 2; strategy Y involves buying shares of equal values (say INR 6000 worth) in month 1 and month 2. Given that the strategies are employed in such a way that total investment at the end of month 2 is same for both (say INR 12000); what can you say about average share prices for both strategies?

Avg. Share price for strategy X <= Avg. Share price for strategy Y

Avg. Share price for strategy X = Avg. Share price for strategy Y

Avg. Share price for strategy X >= Avg. Share price for strategy Y

Insufficient information

Q6. An employee of Company AAB whose office in on the 8th floor can either use the elevator or staircase to reach the office from ground floor. An elevator takes 10 seconds per floor wherever it stops and 5 seconds per floor wherever it does not stop. There are two elevators, elevator A which services floors from 1st till 6th and elevator B which services 7th and above floors. The average wait time for elevator A is 2 minutes and elevator B is 2.5 minutes. Each floor has 2 staircases. The employee takes 6 seconds to climb the first staircase and progressively takes 1 second more per staircase. What should the employee do to reach the office in minimum time?

Elevator A and then staircase

Staircase

Insufficient Information

Elevator B

Q7. PokeEarth is a place where two PokeMen compete against each other; each opponent makes 60 shots in a fight. Psybuck is a PokeMan that intentionally misses 30 out of 60 shots that it makes. However, on start of a particular fight Psybuck becomes partially blind and 20% of his intentional moves are reversed (hits become misses, and vice versa). What is the difference between the maximum and minimum number of hits that Psybuck can make in the fight?

Q8. ZoomDrive is a cab service. It follows a surge pricing model where it increases its ride cost/ km by a certain percentage. It charges 8 INR/ km without surge pricing; the cost to firm/ km is 4 INR. On a particular day it is observed that every 50% increase (on the base value; 100%+50%, 100%+100% and so on) in ride cost/km decreases the number of rides by 20% (on the base value; 100%-20%, 100%-40% and so on). Assuming an average cab ride to be 10km long, what should be the percentage increase in ride cost/ km for maximum profits?

50%

100%

150%

200%

None of the above

Q9. SafeLife is a life insurance firm that sells insurance policies to prospective clients over the phone. The firm tests two strategies A and B on equal number of phone calls (each phone call is equivalent to a prospective client). Strategy A has a client conversion rate of 11% and strategy B has a conversion rate of 15%. For both the strategies, 10% calls made are not answered. The profit per converted client is INR 20,000 and the cost of each phone call is INR 40; assume no cost for unanswered calls. What is the percentage increment in total profit if strategy B is used for all test phone calls?

16%

22%

37%

56%

None of the above

Q10. Shopping.com, an e-commerce website, is planning to introduce a special membership for its customers. The customers signing up for this membership will get free delivery (usually costs INR 100 per order to the company and is paid by the customer) and 20% discount on each order. The annual fee is INR 5000 to avail this membership. By offering this service, the company expects the number of orders per customer increase by 150% and average order value per customer to decrease by 50%. Assume that the total revenue and total cost (excluding the cost of delivery) change in the same ratio. To make this profitable, Shopping.com should -

Restrict it to customers with more than INR 10000 total spend

Restrict the number of free delivery orders to 50

Restrict the number of free delivery orders to 25

Do nothing as this membership will always be profitable

Not introduce this membership as it would be unprofitable

Section 2: Data Type

This section consists of 10 questions

Section 2: Data Type

This section consists of 10 questions

Q1. Assuming all orders which did not get delivered were failed, which year had a greater number of failed orders?

2012

Insufficient information

2013

Equal

None of the above

Q2. If the number of orders not delivered in 2013 were half that of 2012, and number of orders delivered in 2012 were 120,000, what is the number of cash on delivery orders in 2013?

35,250

47,000

94,000

Insufficient information

None of the above

Q3. Hip Hop Tours operate bus tour services. Each tour lasts for an hour. They charge INR200/hour for a seat and INR150/hour for a person standing. What was the revenue generated by them from today’s fares?

25,100

26,000

25,050

19,500

None of the above

Q4. In which pair of years is the number of customers approved for credit cards same?

Any pair

2007 and 2010

2011 and 2013

2007 and 2008

Insufficient information

Q5. Kabir commutes from his home in Zone 1 to his office in Zone 3 on weekdays using metro. He leaves at 8am and returns at 8pm. He visits his Grandma in Zone 2 on Saturday and Sunday and comes back. He uses a single train without any breaks in any journey and the duration of each journey is less than 10 mins. What is maximum amount spent by him in a week while commuting?

320

315

350

355

None of the above

Q6. Suppose percentage of employees are interchanged between departments B and D, and then A and B. If the companies are ranked in descending order of percentage of employees in department A, what is the rank of company 5?

Q7. Company 3 decides to uniformly distribute the employees among department B to E. What is the percentage change in employee strength of department D? (Ignore the interchange in prev. ques.)

16.5%

-16.3%

19.5%

-14.1%

None of the above

Q8. What is the ratio of average amount per transaction in Region A to Region B?

0.88

1.14

0.90

0.86

None of the above

Q9. If the minimum number of orders by an agent is 100, what is the maximum and minimum number of agents who must have ordered?

1200 and 500

1 and 500

500 and 1200

500 and 1

Insufficient information

Q10. Which quarter had the highest average revenue for the companies given below?

Q1 or Q2

Insufficient Information

Section 3: Critical Reasoning

This section consists of 6 questions

Section 3: Critical Reasoning

This section consists of 6 questions

Q1. In 2008, Marvel spent 45% of its total budget on the production of 5 movies, 35% on the marketing of these movies, and the rest on overhead costs. For the same vintage, DC spent 25% of its total budget on the production of 5 movies and 65% on the marketing of these movies. Marvel had viewership of 150,000,000 of the 5 movies it produced in 2008, while DC had viewership of 300,000,000 of the 5 movies it produced in 2008. Assuming both Marvel & DC met their budget, which of the following conclusions is best supported by the information given above?

The amount of money spent on marketing is directly related to the viewership

In 2008, Marvel spent a larger percentage of its budget on overhead costs than DC

DC spent less money than Marvel on the production of its movies in 2008

Marvel's total revenue from viewership of the movies produced in 2008 was lower than that of DC

DC had higher viewership than Marvel because DC spent higher proportion of its budget on marketing

Q2. Analyst: Skilled athletes, such as footballers, cricket players etc. Often have exceptionally poor business acumen and fail when they try to run their own businesses. In fact, in business, most of these athletes are less skilled than are the average white-collar professionals who are not athletes. Generally, athleticism and business acumen rarely go hand in hand. If the analyst’s argument is taken as true, which of the following statements can properly be concluded?

No successful business people are athletes

Athleticism precludes success in business

Some athletes are not less skilled at business than the average white-collar professionals who are not athletes

Any white-collar professional who is not athletic is more successful in business than any athlete

Business is not an athletic endeavour

Q3. There are 2 manufacturing plants in city of Nashville - Manufacturing plant A & Manufacturing plant B. Manufacturing plant A experiences production issues on 26% of its goods, while Manufacturing plant B experiences production issues on 20% of its goods. If production issues caused by poor raw material are disregarded, Manufacturing plant A has 5% lower issues than Manufacturing plant B does. Which of the following conclusions is best supported by the information given above?

Poor raw material causes lesser number of production issues at Manufacturing plant B than at Manufacturing plant A

On average, raw material quality at Manufacturing plant B is better than it is at Manufacturing plant A

Supply chain issues cause a greater number of production issues at Manufacturing plant B than at Manufacturing plant A

The machines at Manufacturing plant B are better equipped to handle poor raw material quality than the machines at Manufacturing plant A

Bad raw material causes higher proportion of production issues at Manufacturing plant A than at Manufacturing plant B

Q4. On a given day, PRV sold movie tickets at Rs. 200/ticket while IONX sold tickets at 300/ticket. Interestingly, PRV & IONX reported identical revenues and identical profits for this given day. The statements above best support which of the following assertions?

PRV and IONX incurred identical costs to run their businesses

PRV sold fewer tickets than did IONX

IONX provides better screening quality than does PRV

In general, movie fanatics prefer PRV to IONX

IONX would not increase its revenues by lowering its prices

Q5. “The new Wellington racquet golden edition is the only racquet that uses most advanced Woodcutter alloy technology to strengthen its frame. The testimony to Wellington racquet's greatness is that the last 12 grandslam winners have all recently switched to it! Isn't it time for you to trade your old racquet for Wellington, to steal those serves, power your swing and add trophies to your tally?” All of the following claims are either implied or made explicitly in the above advertisement EXCEPT:

Switching to the Wellington racquet will improve your play

Wellington racquet is superior to your existing racquet

Grandslam winners are experts and know what constitutes a great racquet

The Wellington racquet helped the last 12 grandslam winners achieve their victory

Using Woodcutter alloy technology in racquet helps to strengthen its frame

Q6. The RBI claims that the economy is beginning a phase of decline in growth and prosperity pointing towards the higher unemployment rates and decreased productivity. This analysis is false, though. The number of people filing for new companies has increased every month for the last year, and corporate lawyers report that they are busier than ever. Which of the following is an assumption on which the argument depends?

Legislation has not been recently passed to make it easier to start a company

Productivity cannot be used as a metric to measure Economic growth

Unemployment rates are not related to decline of growth and prosperity.

There has not been a recent increase in number of corporate lawyers

RBI often misrepresents the current economic situation

Section 4: Guesstimate round

This section has one guesstimate question which you would need to solve (in written).

Section 4: Guesstimate round

This section has one guesstimate question which you would need to solve (in written).

Guesstimate: Estimate annual revenues of Delhi Airport

We recommend checking the answer once you have thoroughly attempted the problem at your end.

Answer:

You will find it difficult approaching this problem from the demand side

Let us try solving it from the supply side. Some important questions that you should think of

What are the sources of revenue for the airport?
What is the major source of revenue?
What are the major factors affecting revenue?
How to quantify different factors affecting revenue?
What are different types of fees charged to airlines?
What are other factors (not directly related to airport infrastructure) that will contribute to the airport revenue?

Step 1: Identify sources of revenue for airport

While attempting a guesstimate, a structured approach right from the start is essential to avoid confusion later

To begin, you might want to imagine yourself travelling by air
Travel to airport by a cab who then parks it --> Car Parking
You walk inside the airport lounge and notice shops --> Rent of retail outlets
You notice airplanes parked --> Aircraft parking charges
Your flight takes off --> Aircraft takeoff/landing charges
This kind of an approach is not a rule but might facilitate structured thinking and would help build an exhaustive case
Each of these categories can be considered as separate guesstimates and then be added to estimate the overall revenue
You may not have a lot of time, so start with the most important source first

For simplicity we will only solve two major streams: Revenue from takeoff / landing and retail outlets

Step 2: Aircraft takeoff/landing fees

Identify factors which will contribute to revenue from takeoff/landing
Revenue = Total units (No. Of aircrafts) X Per unit charge (Fees per landing/takeoff)
In order to estimate the total number of aircrafts, rather than taking a random guess, first break the time span into segments as frequency of aircrafts is dependent on time
For simplicity, lets consider that there is just one runway
You may assume the frequency in these segments based on your experience

Time slot	11 PM to 5 AM	5AM to 11 AM	11AM to 11 PM
Frequency of flights	20 minutes	10 minutes	6 minutes
No. Of flights in an hour	3	6	10
No.of flights in the slot	18	36	120

Therefore, total no. Of aircrafts operating in a day = 18 + 36 + 120 ~ 175

Estimating the takeoff / landing fees is difficult

Therefore, let us try to estimate the revenues from a single flight and assume a percentage of it as takeoff/landing fee
An average aircraft has ~50 rows with ~6 seats in each row
Price of a ticket ~INR 5,000
Revenue from a single flight=50×6×5,000 = INR 15,00,000
Airport development fees are usually ~5% of this amount and could be assumed to be takeoff/landing fees
Takeoff/landing fees = 5%×15,00,000 = INR 75,000
Total annual revenue from take-off/landing = 75,000×175×12 = INR 15,75,00,000

Step 3: Revenue from retail outlets

Calculating the revenue from retail outlets and advertisements entails the following steps:

Assume the terminal to be rectangle with a given length and breadth
However, most of terminal is used for passage, check-in counters, sitting arrangements, etc.
Hence, make an assumption on the proportion of terminal area available for retail outlets
Use a suitable rent per unit area to calculate the rent
Annual revenue from retail outlets =

𝑇𝑒𝑟𝑚𝑖𝑛𝑎𝑙 𝑎𝑟𝑒𝑎 × 𝑃𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡𝑒𝑟𝑚𝑖𝑛𝑎𝑙 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑟𝑒𝑡𝑎𝑖𝑙 𝑜𝑢𝑡𝑙𝑒𝑡𝑠 × 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑖𝑧𝑒 𝑜𝑓 𝑎 𝑟𝑒𝑡𝑎𝑖𝑙 𝑜𝑢𝑡𝑙𝑒𝑡 × 𝐴𝑛𝑛𝑢𝑎𝑙 𝑟𝑒𝑛𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑎𝑟𝑒𝑎

Bonus Points

The candidate will earn bonus points by including some exclusive points in their structure such as, but not limited to:

Mentioning other streams of revenue like advertising, paid Wi-Fi, services to the airlines etc.
Segmenting the revenues by domestic and international travel
Segmenting the retails outlets by space; Larger spaces like business lounges and smaller spaces like food stores etc.
Segmenting the retails space rentals on location of the outlet in the terminal area
Identifying and comparing different approaches to estimate the same result; For example the aircraft parking charges can also be calculated using average weight of an aircraft and parking charges per unit weight (This is how the charges are actually calculated)

We recommend checking the answer once you have thoroughly attempted the problem at your end.

Answer:

You will find it difficult approaching this problem from the demand side

Let us try solving it from the supply side. Some important questions that you should think of

What are the sources of revenue for the airport?
What is the major source of revenue?
What are the major factors affecting revenue?
How to quantify different factors affecting revenue?
What are different types of fees charged to airlines?
What are other factors (not directly related to airport infrastructure) that will contribute to the airport revenue?

Step 1: Identify sources of revenue for airport

While attempting a guesstimate, a structured approach right from the start is essential to avoid confusion later

To begin, you might want to imagine yourself travelling by air
Travel to airport by a cab who then parks it --> Car Parking
You walk inside the airport lounge and notice shops --> Rent of retail outlets
You notice airplanes parked --> Aircraft parking charges
Your flight takes off --> Aircraft takeoff/landing charges
This kind of an approach is not a rule but might facilitate structured thinking and would help build an exhaustive case
Each of these categories can be considered as separate guesstimates and then be added to estimate the overall revenue
You may not have a lot of time, so start with the most important source first

For simplicity we will only solve two major streams: Revenue from takeoff / landing and retail outlets

Step 2: Aircraft takeoff/landing fees

Identify factors which will contribute to revenue from takeoff/landing
Revenue = Total units (No. Of aircrafts) X Per unit charge (Fees per landing/takeoff)
In order to estimate the total number of aircrafts, rather than taking a random guess, first break the time span into segments as frequency of aircrafts is dependent on time
For simplicity, lets consider that there is just one runway
You may assume the frequency in these segments based on your experience

Time slot	11 PM to 5 AM	5AM to 11 AM	11AM to 11 PM
Frequency of flights	20 minutes	10 minutes	6 minutes
No. Of flights in an hour	3	6	10
No.of flights in the slot	18	36	120

Therefore, total no. Of aircrafts operating in a day = 18 + 36 + 120 ~ 175

Estimating the takeoff / landing fees is difficult

Therefore, let us try to estimate the revenues from a single flight and assume a percentage of it as takeoff/landing fee
An average aircraft has ~50 rows with ~6 seats in each row
Price of a ticket ~INR 5,000
Revenue from a single flight=50×6×5,000 = INR 15,00,000
Airport development fees are usually ~5% of this amount and could be assumed to be takeoff/landing fees
Takeoff/landing fees = 5%×15,00,000 = INR 75,000
Total annual revenue from take-off/landing = 75,000×175×12 = INR 15,75,00,000

Step 3: Revenue from retail outlets

Calculating the revenue from retail outlets and advertisements entails the following steps:

Assume the terminal to be rectangle with a given length and breadth
However, most of terminal is used for passage, check-in counters, sitting arrangements, etc.
Hence, make an assumption on the proportion of terminal area available for retail outlets
Use a suitable rent per unit area to calculate the rent
Annual revenue from retail outlets =

Bonus Points

The candidate will earn bonus points by including some exclusive points in their structure such as, but not limited to:

Mentioning other streams of revenue like advertising, paid Wi-Fi, services to the airlines etc.
Segmenting the revenues by domestic and international travel
Segmenting the retails outlets by space; Larger spaces like business lounges and smaller spaces like food stores etc.
Segmenting the retails space rentals on location of the outlet in the terminal area
Identifying and comparing different approaches to estimate the same result; For example the aircraft parking charges can also be calculated using average weight of an aircraft and parking charges per unit weight (This is how the charges are actually calculated)

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