NMIMS Competency Test – Practice Set 4

NMIMS Competency Test – Practice Set 4 (Advanced Level)

NMIMS Competency Test – Practice Set 4 (Advanced Level)

Section A: Verbal Ability (8 Questions)
Q1. Para Summary Hard
The post-structuralist critique of authorship posits that a text is not a closed vessel of the author’s intentions but a multidimensional space where a variety of writings, none of them original, blend and clash. To assign an Author to a text is to impose a limit on that text, to furnish it with a final signified, to close the writing. Thus, the birth of the reader must be at the cost of the death of the Author.
Choose the best summary:
  • A) Authors are irrelevant because they copy ideas from others, so readers should ignore them.
  • B) The meaning of a text is determined by the reader’s interpretation rather than the author’s intent, as texts are composites of pre-existing cultural ideas.
  • C) Writing is a closed system where the author’s intent is the only valid meaning, and readers must strive to discover it.
  • D) Post-structuralism argues that authors die metaphorically when they finish writing a book.
Correct Answer: B
Rationale: The passage describes the post-structuralist view (Barthes’ “Death of the Author”). It argues a text is a “multidimensional space” of existing writings and that the reader creates the meaning, not the author. Option B captures this shift from author-intent to reader-interpretation.
Q2. Para Completion Moderate
Epistemic humility is the recognition that our knowledge is always provisional and incomplete. It does not demand skepticism about all truth claims, but rather a wariness of certainty. In a polarized political landscape, this virtue is scarce. ________.
Choose the most logical sentence:
  • A) Consequently, political debates often turn into shouting matches where winning is more important than learning.
  • B) Therefore, we should stop debating politics altogether.
  • C) Certainty is the hallmark of a strong leader who knows the truth.
  • D) Science is the only field where humility is practiced.
Correct Answer: A
Rationale: The passage defines “epistemic humility” (admitting we might be wrong) and notes its scarcity in politics. The blank needs a consequence of this scarcity. Option A explains that without humility, debates become about winning/shouting rather than learning/truth.
Q3. Inference-Based Moderate
Passage: “While the correlation between income and happiness plateaus after basic needs are met, the correlation between autonomy—the feeling of being in control of one’s life—and happiness remains linear and strong across all income brackets.”
Which can be inferred?
  • A) A billionaire is likely no happier than a middle-class person if the billionaire lacks control over their schedule.
  • B) Money has absolutely no impact on happiness once you can afford food and shelter.
  • C) People with high autonomy are always wealthy.
  • D) Poor people cannot be happy because they lack autonomy.
Correct Answer: A
Rationale: The passage states income’s effect on happiness plateaus (stops helping), but autonomy’s effect remains strong. Therefore, high income without autonomy (Option A) would yield less happiness than someone with autonomy.
Q4. RC (Short Passage) Hard
The “Tragedy of the Commons” describes a scenario where individuals acting in their own self-interest deplete a shared resource, ultimately harming the entire community. However, Nobel laureate Elinor Ostrom demonstrated that communities can and do self-organize to manage resources sustainably without government intervention or privatization, provided there are clear boundaries and conflict-resolution mechanisms.
The author implies that:
  • A) The “Tragedy of the Commons” is an inevitable law of nature.
  • B) Privatization is the only solution to resource depletion.
  • C) Human cooperation is possible in managing shared resources if the right institutional rules are in place.
  • D) Governments must always step in to save the environment.
Correct Answer: C
Rationale: The passage contrasts the “Tragedy” (failure) with Ostrom’s work, which showed communities can self-organize with the right rules. Option C summarizes this potential for cooperative management.
Q5. Vocabulary in Context Moderate
The professor’s lecture was so esoteric that only the three PhD students in the front row seemed to understand the references to 12th-century mysticism.
Esoteric most nearly means:
  • A) Boring and repetitive
  • B) Intended for or likely to be understood by only a small number of people with specialized knowledge
  • C) Loud and passionate
  • D) Factually incorrect
Correct Answer: B
Rationale: Context clues: “only the three PhD students… seemed to understand.” This implies the knowledge was specialized and restricted to a few.
Q6. Logical Flow Moderate
Meritocracy is often touted as the fairest system, rewarding talent and effort above birthright. However, in practice, “merit” is often defined by those already in power, who prioritize traits they possess. ________.
Which sentence should come next?
  • A) Hard work is the only path to success.
  • B) Thus, meritocracy can inadvertently calcify existing class structures rather than dismantling them.
  • C) Therefore, we should return to a system of aristocracy.
  • D) Schools should stop giving grades to students.
Correct Answer: B
Rationale: The “However” introduces a contrast: Meritocracy is supposed to be fair, BUT power-holders define “merit” to match their own traits. Option B concludes this thought: the system ends up reinforcing the status quo instead of changing it.
Q7. Tone Identification Moderate
“The corporation’s ‘green’ initiative, which consisted entirely of changing the logo color to green while continuing to dump waste in the river, was a breathtaking exercise in cynicism.”
The tone of this sentence is:
  • A) Objective
  • B) Scornful
  • C) Optimistic
  • D) Melancholic
Correct Answer: B
Rationale: The sentence describes a company doing something superficial (changing logo color) while doing something harmful (dumping waste), calling it “breathtaking cynicism.” This is a scornful, critical tone.
Q8. Critical Reasoning Moderate
Argument: “To reduce crime, the city installed bright streetlights in every alley. Crime rates dropped by 10%.”
Which option suggests the plan was NOT the cause?
  • A) Criminals moved their activities to the neighboring city which has dark alleys.
  • B) The city also hired 500 new police officers during the same period.
  • C) Residents feel safer walking at night.
  • D) Electricity bills for the city increased.
Correct Answer: B
Rationale: The argument implies: Lights -> Less Crime. To show the lights weren’t the cause, we need an Alternative Cause. Option B introduces 500 new police officers. It is highly likely the police reduced the crime, not the lights.
Section B: Mental Ability / Logical Reasoning (6 Questions)
Q9. Logical Deduction Moderate
All unstable elements are radioactive. Some radioactive elements are used in medicine. No heavy metals are used in medicine.
Which conclusion follows?
  • A) Some unstable elements are heavy metals.
  • B) No unstable elements are heavy metals.
  • C) Some radioactive elements are not heavy metals.
  • D) All heavy metals are radioactive.
Correct Answer: C
Rationale:
1. Some Radioactive elements are used in Medicine.
2. No Heavy Metals are used in Medicine.
Therefore, the Radioactive elements that are used in medicine cannot be Heavy Metals. Thus, Some Radioactive elements are not Heavy Metals.
Q10. Course of Action Moderate
Situation: A dam has developed a minor crack. Engineers say it is safe for now but needs repair within 6 months. However, the monsoon is predicted to be unusually severe starting next week.
Best Course of Action:
  • A) Wait for the monsoon to pass, then repair it.
  • B) Immediately evacuate all downstream villages and drain the dam completely.
  • C) Initiate emergency reinforcement of the crack immediately and maintain 24/7 monitoring during the monsoon.
  • D) Ignore the weather forecast as they are often wrong.
Correct Answer: C
Rationale: This balances safety and urgency. A and D ignore the risk. B is panic-mongering and economically devastating before a crisis actually occurs. C is the proactive, measured engineering response: mitigate the immediate risk (reinforce) and monitor closely.
Q11. Data Sufficiency Moderate
Question: Is \(x\) an odd integer?
Statement I: \(2x + 1\) is an odd integer.
Statement II: \(x^2\) is an odd integer.
  • A) Statement I alone is sufficient.
  • B) Statement II alone is sufficient.
  • C) Both statements together are sufficient.
  • D) Neither statement is sufficient.
Correct Answer: B
Rationale:
Statement I: \(2x + 1\) is always odd for any integer \(x\) (even or odd). So \(x\) could be 1 (odd) or 2 (even). Not sufficient.
Statement II: If \(x^2\) is odd, then \(x\) must be odd (since odd × odd = odd, and even × even = even). Thus, \(x\) is definitely odd. Sufficient.
Q12. Complex Arrangement Hard
Four cars (Red, Blue, Green, White) are parked in a row.
• The Red car is not at either end.
• The Blue car is to the immediate left of the Green car.
• The White car is separated from the Green car by exactly one car.
Which car is at the extreme right?
  • A) Red
  • B) Blue
  • C) Green
  • D) White
Correct Answer: D
Rationale:
1. Red not at ends. Positions: _ R _ _ or _ _ R _.
2. Blue is immediate left of Green (BG).
3. White separated from Green by one (W _ G or G _ W).
Arrangement that fits: Blue – Green – Red – White.
– Blue left of Green? Yes.
– Red not at end? Yes (Position 3).
– White separated from Green by one? Yes (Green is 2, White is 4).
Extreme right car is White.
Q13. Probability / Logic Hard
A box contains 10 socks: 6 black and 4 white. You pick two socks at random without looking. What is the probability that you have a matching pair (either both black or both white)?
  • A) 40%
  • B) 46.6% (7/15)
  • C) 50%
  • D) 60%
Correct Answer: B
Rationale:
Total combinations = \( {10 \choose 2} = \frac{10 \times 9}{2} = 45 \).
Black Pair: \( {6 \choose 2} = \frac{6 \times 5}{2} = 15 \).
White Pair: \( {4 \choose 2} = \frac{4 \times 3}{2} = 6 \).
Total Matching = \( 15 + 6 = 21 \).
Probability = \( \frac{21}{45} = \frac{7}{15} \approx 46.6\% \).
Q14. Syllogism Moderate
Statements:
Some bosses are leaders.
All leaders are visionaries.
Conclusions:
I. Some bosses are visionaries.
II. All visionaries are leaders.
  • A) Only I follows
  • B) Only II follows
  • C) Both follow
  • D) Neither follows
Correct Answer: A
Rationale: Since “Leaders” is entirely inside “Visionaries”, the part of “Bosses” that overlaps with “Leaders” MUST also overlap with “Visionaries”. So I is true. Conclusion II is false because the Visionary circle is larger than the Leader circle.
Section C: Managerial Ability (XAT Style – Very Long Situations)
Caselet 1: The Loyal Vendor Hard
You are the Procurement Head of a large automobile company. “AutoParts Inc.,” a small supplier, has been your loyal partner for 20 years. They stood by you during your bankruptcy phase 10 years ago, supplying parts on credit when no one else would. However, AutoParts Inc. has failed to modernize. Their defect rate is 2% (industry standard is 0.5%), causing delays on your assembly line. Your CEO has ordered a “Zero Defect” policy and wants you to switch to a global vendor, “GlobalTech,” who offers 0.1% defect rates at a 10% lower cost. Switching would bankrupt AutoParts Inc., leading to 200 job losses in a rural town where they are the main employer. AutoParts Inc.’s owner, Mr. Rao, begs for one last chance but admits he lacks capital for new machinery.
What is the most ethical and business-savvy decision?
  • A) Immediately terminate the contract with AutoParts Inc. and switch to GlobalTech to comply with the CEO’s order and protect shareholder value.
  • B) Continue with AutoParts Inc. indefinitely out of loyalty, absorbing the defect costs as a “loyalty tax” for their past support.
  • C) Give AutoParts Inc. a harsh ultimatum: fix the quality in 3 months or be fired, knowing well they cannot afford the machinery to do so.
  • D) Offer AutoParts Inc. a partial contract (30% volume) to keep them afloat while moving 70% to GlobalTech, and offer a low-interest loan or technical support from your company to help Mr. Rao upgrade his machinery over 12 months.
  • E) Recommend that your company acquire AutoParts Inc. immediately to save the jobs, even though it doesn’t fit your core business strategy.
Correct Answer: D
Rationale: This is a classic “Heart vs. Head” dilemma. Option D balances business needs (moving volume to the better vendor ensures quality) with ethical responsibility (keeping a lifeline to keep AutoParts afloat). Crucially, it offers a constructive solution (loan/technical support) to help the partner improve, honoring the past relationship without compromising the company’s future.
Caselet 2: The Star Harassment Hard
You are the HR Director of a top consulting firm. “Raj,” your top-performing partner who brings in 40% of the firm’s revenue, has been accused of sexual harassment by a junior analyst, “Priya.” Priya has provided screenshots of inappropriate texts that are suggestive but not explicitly soliciting. Raj denies it, claiming it was “banter” and that Priya is underperforming and fears being fired. The firm is currently in a fragile financial state; losing Raj would likely cause a client exodus that could collapse the firm. However, the firm has a “Zero Tolerance” policy.
What is the best course of action?
  • A) Fire Raj immediately to uphold the Zero Tolerance policy and protect the firm’s reputation, regardless of the financial collapse.
  • B) Fire Priya for underperformance to remove the accuser and protect the firm’s revenue source.
  • C) Suspend Raj pending a 3rd-party independent investigation, while simultaneously preparing a contingency plan to retain his clients; if found guilty, terminate him regardless of financial cost.
  • D) Issue Raj a private warning and transfer Priya to a different department with a promotion to keep her quiet.
  • E) Arrange a mediation session where Raj apologizes to Priya, and ask them to shake hands and move on.
Correct Answer: C
Rationale: C is the only option that follows due process (investigation), ensures fairness (neutral 3rd party), and acts responsibly as a business leader by preparing for the worst-case scenario (client contingency). It prioritizes the firm’s long-term integrity over short-term revenue but manages the risk intelligently.
Caselet 3: The Rural Expansion Hard
You are the Marketing Head of an FMCG company. You have a budget of $1 Million. You have two options:
1. Urban Consolidation: Launch a premium variant in cities. Expected ROI is 15% with low risk.
2. Rural Penetration: Launch a low-cost variant in rural villages. This requires building a new distribution network. Expected ROI is 5% in Year 1, but 25% by Year 3.
The problem: The CEO is retiring in 1 year and his bonus is tied to this year’s profit. He is pressuring you to choose Option 1. However, your competitor is already entering the rural market, and if you don’t enter now, you will lose that market forever (First Mover Advantage).
What should you do?
  • A) Choose Option 1 (Urban) to please the CEO and secure your own promotion, as the rural market is risky.
  • B) Choose Option 2 (Rural) and present a manipulated forecast showing high Year 1 profits to get the CEO’s approval.
  • C) Choose Option 2 (Rural) but frame the proposal to the Board (not just the CEO) as a critical strategic defense against the competitor, acknowledging the lower short-term profit but highlighting long-term survival.
  • D) Split the budget 50/50, ensuring both fail to achieve critical mass and impact.
  • E) Resign, as the corporate governance is flawed.
Correct Answer: C
Rationale: Option C addresses the core conflict: the CEO’s short-term focus vs. the company’s long-term survival. By framing Rural as a “strategic defense” against a competitor, you shift the argument from “profit” (which hurts the CEO) to “survival” (which the Board cares about). It aligns the difficult decision with the broader organizational goal.
Caselet 4: The Whistleblower’s Dilemma Hard
You are a Project Manager at a construction firm building a public bridge. You discover that your sub-contractor is using cement that is 10% below the required strength grade. It is technically “safe” for normal loads but might fail during a once-in-a-century earthquake. Replacing the concrete now would delay the project by 6 months and cost millions, bankrupting your firm. Your boss tells you, “It’s safe enough. Don’t ruin us. Just sign off on it.”
What do you do?
  • A) Sign off on it. The probability of an earthquake is low, and bankrupting the firm hurts hundreds of employees.
  • B) Anonymously leak the information to the press, ensuring the project is stopped but protecting your identity.
  • C) Refuse to sign and officially report the issue to the government oversight committee, accepting that your firm might go bankrupt and you will lose your job.
  • D) Sign off but keep a secret personal file documenting your objection to protect yourself legally in the future.
  • E) Negotiate with the sub-contractor to reinforce the remaining parts of the bridge with extra-strong steel to compensate for the weak cement, without reporting the past error.
Correct Answer: C
Rationale: In engineering ethics (and XAT ethics), safety of life is the absolute non-negotiable hierarchy. You must officially report it. The risk of bankruptcy/job loss is heavy, but the risk of mass casualty is heavier. Option B is passive-aggressive. E is illegal.
Caselet 5: The Algorithm Bias Hard
You are the Product Head of a Fintech company. Your new AI loan approval algorithm has increased profits by 20% by predicting defaults better. However, a data audit reveals the AI is rejecting loan applications from specific minority zip codes at a rate 3x higher than others, even when income levels are identical. The AI is technically “accurate” (these zip codes do have higher default rates historically due to systemic issues), but the model is perpetuating discrimination. Removing the zip-code variable reduces the model’s accuracy and profits by 5%.
What is the best decision?
  • A) Keep the model as is. The algorithm is based on math/data, not racism, and the company’s goal is profit.
  • B) Remove the zip-code variable immediately. The 5% profit loss is the “cost of ethics” and prevents potential lawsuits or PR disasters.
  • C) Keep the model but hide the audit results and claim the algorithm is a “black box” that cannot be explained.
  • D) Create a special “high-risk” loan product with higher interest rates specifically for those rejected zip codes to capture the market.
  • E) Tweaking the algorithm to specifically favor the minority zip codes to artificially balance the numbers, even if it means approving bad loans.
Correct Answer: B
Rationale: B is the winner. While it hurts profit (5%), it aligns the company with fair lending practices. In the long run, algorithmic bias invites massive regulatory fines and reputational destruction that cost far more than 5%. It is the sustainable choice.
Caselet 6: The Innovation vs. Legacy Hard
You are the new CEO of a 100-year-old watch company… Sales are declining due to smartwatches. R&D head proposes a pivot to hybrid smartwatches. The Production Head, a veteran, says, “If we put a chip in our watch, we lose our soul. I will resign and take the master craftsmen with me.”
What is the best strategic path?
  • A) Ignore the Production Head. The future is digital. Pivot to smartwatches immediately to save the company.
  • B) Fire the R&D head. The company’s brand equity is in mechanical heritage; you should not chase trends you don’t understand.
  • C) Create a sub-brand for the smartwatches to test the market, while keeping the main brand focused on mechanical luxury, assuring the Production Head that the core “soul” remains untouched.
  • D) Compromise by putting a digital screen on a mechanical movement, creating a product that is expensive to make and pleases no one.
  • E) Accept the Production Head’s resignation and hire new, younger engineers to replace the craftsmen.
Correct Answer: C
Rationale: This is the “Ambidextrous Organization” approach. It protects the core business (mechanical/soul) to keep the Production Head and brand image happy, while exploring the new future (smartwatch) in a safe, separate silo (sub-brand) to test the waters without contaminating the main brand equity.
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