Question 1
What does marginal utility measure?
Satisfaction divided by the quantity of the good
Added satisfaction from having one more unit of the good
Satisfaction divided by the price of the good
All of these
None of these
BDM End Term: 11 December 2022, Set ETD1 (September 2022 term)
The IIT Madras BS Business Data Management (BDM) End Term paper sat on 11 Dec 2022, in the September 2022 term, set ETD1: 26 questions for 40 marks in 180 minutes. Every question is below with its answer. Take it as a timed mock test to be marked, or read it through first.
- 26
- 40
- 180 min
- 11
- 8
- 7
Show answer
Correct answer
Added satisfaction from having one more unit of the good
Question 2
Which of the following statements is always true?
Current ratio < Quick ratio
Current ratio < 0
Current ratio >= Quick ratio
Current ratio = Quick ratio
Show answer
Correct answer
Current ratio >= Quick ratio
Question 3
When computing price elasticity, the slope of the demand curve depends on
The units used to measure quantity but not the units used to measure price
The units used to measure price but not the units used to measure quantity
Neither the units used to measure quantity nor the units used to measure price
The units used to measure the quantity and the units used to measure price
Show answer
Correct answer
Neither the units used to measure quantity nor the units used to measure price
Question 4
What category of SKUs should be kept closer to the processing area?
Low demand / slow moving items - to avoid clutter or congestion near the processing area
High Demand / Fast Moving items - Saves time and effort. Helps in quicker access
Expensive Items - To increase security, the items are kept at a visible distance, enabling constant surveillance
Inexpensive Items - To avoid significant losses caused by thefts.
Show answer
Correct answer
High Demand / Fast Moving items - Saves time and effort. Helps in quicker access
Question 5
Internal Pool Sourcing is_________________
pooling employees together to form a team
filling a vacant position from within the organisation
transferring an employee to the bench once the project is completed
firing an employee from the project
Show answer
Correct answer
filling a vacant position from within the organisation
Question 6
Which of the following is not a source of survey data? (select all that is applicable)
Market research data
Stock market data
Rainfall data
Consumer pyramid data
Show answer
Correct answers
Stock market data
Rainfall data
Question 7
What does a high Average Days of Inventory signify?
Warehouse / Firm has inventory that is difficult to sell
It is a high-demand product - with a heavy flow of sales volume
The replenishment of that product from the Mother Distribution Center is not keeping up with the sales observed by the recipient DC.
Too many return orders.
Show answer
Correct answers
Warehouse / Firm has inventory that is difficult to sell
The replenishment of that product from the Mother Distribution Center is not keeping up with the sales observed by the recipient DC.
Question 8
If the sales (volume) of the laptops increase in a particular period, which of the following item(s) also increase(s)? Choose all that apply
Profit
Cost of Goods Sold
Closing Inventory
Fixed Cost
Show answer
Correct answer
Cost of Goods Sold
Question 9
The graphs below indicate which of the following? Choose all that apply
Production Quantity is similar between two fiscal years (2019-20 and 2020-21)
Difference between the Sales and Production shows an increase in December 2019-20 from the previous month
Production Quantity is likely to be influenced by Sales
No meaningful conclusion can be derived from the graph.
Show answer
Correct answers
Difference between the Sales and Production shows an increase in December 2019-20 from the previous month
Production Quantity is likely to be influenced by Sales
Question 10
If the current ratio is 2:1 and the Quick ratio is 1.5:1, then which of the following is/are true? (Select all that are applicable)
Current assets are 2 times the liability
Liability is 2 times the current assets
Stocks is 0.5 times the liability
Liability is 0.5 times Stocks
Current assets are greater than stocks
Stocks are greater than current assets
None of these
Show answer
Correct answers
Current assets are 2 times the liability
Stocks is 0.5 times the liability
Current assets are greater than stocks
Question 11
The decrease in price of a product from INR 10 to INR 8 raised the demand by 30%. What is the elasticity of demand for the product?
Show answer
Correct answer: 1.5
Question 12
From the table, calculate the revenue growth on 11. April 2021 with respect to 10. April 2021.
| Date | Revenue |
|---|---|
| 01 April 2021 | ₹ 28,52,404 |
| 02 April 2021 | ₹ 27,08,802 |
| 03 April 2021 | ₹ 27,43,849 |
| 04 April 2021 | ₹ 31,12,277 |
| 05 April 2021 | ₹ 31,57,606 |
| 06 April 2021 | ₹ 30,43,087 |
| 07 April 2021 | ₹ 29,56,175 |
| 08 April 2021 | ₹ 27,30,834 |
| 09 April 2021 | ₹ 28,05,271 |
| 10 April 2021 | ₹ 26,08,451 |
| 11 April 2021 | ₹ 29,63,639 |
| 12 April 2021 | ₹ 29,44,822 |
| 13 April 2021 | ₹ 28,12,689 |
| 14 April 2021 | ₹ 27,44,763 |
| 15 April 2021 | ₹ 27,89,945 |
Show answer
Correct answer: 14.1 (accepted within ±0.7)
Question 13
Match the following
| A. Pareto Principle | 1. A metric to calculate the rate at which customers stop doing business with a company over a given period of time. |
|---|---|
| B. A/B Testing | 2. Helps companies to make careful changes to their user experiences while collecting data on the results. |
| C. Churn Rate | 3. A software/website that facilitates the smooth transfer of funds between customers and online businesses |
| D. Nudge Theory | 4. Most things in business (revenue, sales volume, etc) are not distributed evenly – some contribute more than others. |
| 5. A way of offering small clues that support decision-making |
A - 4,B - 2,C - 1,D - 5
A -5,B - 4,C - 1,D - 3
A -3,B - 4,C - 2,D -5
A -1,B - 4,C -2,D - 5
Show answer
Correct answer
A - 4,B - 2,C - 1,D - 5
Question 14
The figure represents a bubble chart for mobiles, where X-axis represents the Volumes, Y-axis represents the Revenues, and the size of the bubble represents the average days of inventory. Select the option/s that is/are wrong:
Reduce the inventory for the SKU with 24 as average days of inventory
Increase the inventory for the SKU with 24 as average days of inventory
SKU with 24 is an Outlier and hence remove it from analysis.
Both Reduce the inventory for the SKU with 24 as average days of inventory & SKU with 24 is an Outlier and hence remove it from analysis.
Show answer
Correct answer
Reduce the inventory for the SKU with 24 as average days of inventory
Question 15
Arrange the following steps while working with unstructured data in a ranking modeling: I. Normalizing
II. Preprocessing
III. Ranking
IV. Composite score
I -> II -> III -> IV
II -> I -> IV -> III
I -> II -> IV -> III
II -> I -> III -> IV
Show answer
Correct answer
II -> I -> IV -> III
Question 16
Consider the dataset.
| Candidates | F1: Year of experience | F2: Count Skill | F3: Count_key_projects | F4: When will be available to join (months) |
|---|---|---|---|---|
| Partha | 5.0 | 2 | 2 | 2 |
| Siva | 5.0 | 1 | 1 | 2 |
| Akanksha | 5.5 | 1 | 2 | 2 |
| Lavanya | 6.0 | 1 | 1 | 3 |
Here the factors F1 ..F3 are “higher the better”, but, F4 is “lower the better”. Rank the above candidates and choose the correct ranking from the below options.
Partha > Akanksha > Siva > Lavanya
Akanksha > Lavanya > Siva> Partha
Partha < Akanksha < Lavanya < Siva
Akanksha < Lavanya < Siva< Partha
Show answer
Correct answer
Partha > Akanksha > Siva > Lavanya
Question 17
Which of the following are the functions of a Payment Merchant like G-Pay or Paytm?
Targets users with low bank balances and provides them with surplus money
Acts as the mediator between the merchant and the financial institutions involved
Acts as a distributor for products and services
Provides multiple payment options
Show answer
Correct answers
Acts as the mediator between the merchant and the financial institutions involved
Provides multiple payment options
Question 18
Increase in which of the following will increase the Net Margin? Choose all that apply
Revenue
Direct Material Cost
Direct Labour Cost
Shipping Cost
Insufficient Information
Show answer
Correct answer
Insufficient Information
Question 19
Analyze the following data set and answer the given sub questions
| S. No | Customer ID | Merchant Segment | Device | Test / Control Group | Old Engagement Segment | New Engagement Segment |
|---|---|---|---|---|---|---|
| 1 | 441280 | Electronics | UPI | T | Low | Medium |
| 2 | 441265 | Travel | PayLater | T | Medium | Low |
| 3 | 441250 | Electronics | Debit Card | T | Medium | Low |
| 4 | 441285 | Travel | Credit Card | T | Medium | Low |
| 5 | 441285 | Grocery | UPI | T | Low | Medium |
| 6 | 441283 | Travel | Debit Card | C | About to churn | High |
| 7 | 441251 | Grocery | UPI | C | Low | High |
| 8 | 441269 | Electronics | Credit Card | C | About to churn | High |
| 9 | 441420 | Fashion | UPI | C | Medium | Low |
| 10 | 441777 | Fashion | UPI | C | Medium | High |
What can we infer from this A/B Testing?
People who buy Groceries avoid the usage of Credit Card
The test group did not respond well to the new features or nudges.
The nudge worked.
It is not possible for a previously Medium level engagement customer to drop down to an ‘About to Churn’ Level
Show answer
Correct answer
The test group did not respond well to the new features or nudges.
Question 20
Analyze the following data set and answer the given sub questions
| S. No | Customer ID | Merchant Segment | Device | Test / Control Group | Old Engagement Segment | New Engagement Segment |
|---|---|---|---|---|---|---|
| 1 | 441280 | Electronics | UPI | T | Low | Medium |
| 2 | 441265 | Travel | PayLater | T | Medium | Low |
| 3 | 441250 | Electronics | Debit Card | T | Medium | Low |
| 4 | 441285 | Travel | Credit Card | T | Medium | Low |
| 5 | 441285 | Grocery | UPI | T | Low | Medium |
| 6 | 441283 | Travel | Debit Card | C | About to churn | High |
| 7 | 441251 | Grocery | UPI | C | Low | High |
| 8 | 441269 | Electronics | Credit Card | C | About to churn | High |
| 9 | 441420 | Fashion | UPI | C | Medium | Low |
| 10 | 441777 | Fashion | UPI | C | Medium | High |
If a FinTech company wants to cut down losses, which of the following should they do?
Increase approval cutoff of credit score
Decrease approval cutoff of credit score
Increase interest rate
Increase approval limit for loans
Give more loans
Show answer
Correct answer
Increase approval cutoff of credit score
Question 21
Answer the given subquestions on the Overall Equipment Effectiveness of fasteners
manufacturing.
Hint:
Just in case you forgot the formula
Availability = Run Time / Planned Production Time
Run Time = Planned Production Time − Lost Time
Performance = (Total Count / Run Time) / Ideal Run Rate
Quality = Good Count / Total Count
OEE = Availability × Performance × Quality
A nut manufacturing process had scheduled maintenance of two shifts in a particular week. Which components(s) of Overall Equipment Effectiveness (OEE) will certainly be affected in that week? a) availability
b) performance
c) quality
only b
only a
b and c
All of these
None of these
Show answer
Correct answer
only a
Question 22
Answer the given subquestions on the Overall Equipment Effectiveness of fasteners
manufacturing.
Hint:
Just in case you forgot the formula
Availability = Run Time / Planned Production Time
Run Time = Planned Production Time − Lost Time
Performance = (Total Count / Run Time) / Ideal Run Rate
Quality = Good Count / Total Count
OEE = Availability × Performance × Quality
Calculate the following of the Gear Manufacturing Equipment for a particular week
| Parameters | Week 1 |
|---|---|
| No. of Shifts/ Day (No Holiday on any day of the week) | 3 |
| No. of Hours/Shift | 8 |
| Lost Time in Hours | 24 |
| Designed production speed of gears per Hour | 60 |
| Total Product Output | 6740 |
| Scrap (S) | 122 |
Availability - _______%
Show answer
Correct answer: 85.5 (accepted within ±0.5)
Question 23
Answer the given subquestions on the Overall Equipment Effectiveness of fasteners
manufacturing.
Hint:
Just in case you forgot the formula
Availability = Run Time / Planned Production Time
Run Time = Planned Production Time − Lost Time
Performance = (Total Count / Run Time) / Ideal Run Rate
Quality = Good Count / Total Count
OEE = Availability × Performance × Quality
Calculate the following of the Gear Manufacturing Equipment for a particular week
| Parameters | Week 1 |
|---|---|
| No. of Shifts/ Day (No Holiday on any day of the week) | 3 |
| No. of Hours/Shift | 8 |
| Lost Time in Hours | 24 |
| Designed production speed of gears per Hour | 60 |
| Total Product Output | 6740 |
| Scrap (S) | 122 |
Performance ________%
Show answer
Correct answer: 78 (accepted within ±0.5)
Question 24
Answer the given subquestions on the Overall Equipment Effectiveness of fasteners
manufacturing.
Hint:
Just in case you forgot the formula
Availability = Run Time / Planned Production Time
Run Time = Planned Production Time − Lost Time
Performance = (Total Count / Run Time) / Ideal Run Rate
Quality = Good Count / Total Count
OEE = Availability × Performance × Quality
Calculate the following of the Gear Manufacturing Equipment for a particular week
| Parameters | Week 1 |
|---|---|
| No. of Shifts/ Day (No Holiday on any day of the week) | 3 |
| No. of Hours/Shift | 8 |
| Lost Time in Hours | 24 |
| Designed production speed of gears per Hour | 60 |
| Total Product Output | 6740 |
| Scrap (S) | 122 |
Quality ________%
Show answer
Correct answer: 98 (accepted within ±0.5)
Question 25
Answer the given subquestions on the Overall Equipment Effectiveness of fasteners
manufacturing.
Hint:
Just in case you forgot the formula
Availability = Run Time / Planned Production Time
Run Time = Planned Production Time − Lost Time
Performance = (Total Count / Run Time) / Ideal Run Rate
Quality = Good Count / Total Count
OEE = Availability × Performance × Quality
Calculate the following of the Gear Manufacturing Equipment for a particular week
| Parameters | Week 1 |
|---|---|
| No. of Shifts/ Day (No Holiday on any day of the week) | 3 |
| No. of Hours/Shift | 8 |
| Lost Time in Hours | 24 |
| Designed production speed of gears per Hour | 60 |
| Total Product Output | 6740 |
| Scrap (S) | 122 |
OEE ________ (Enter a number from 0 to 1 up to 3 decimal places)
Show answer
Correct answer: 0.655 (accepted within ±0.015)
Question 26
Answer the given subquestions on the Overall Equipment Effectiveness of fasteners
manufacturing.
Hint:
Just in case you forgot the formula
Availability = Run Time / Planned Production Time
Run Time = Planned Production Time − Lost Time
Performance = (Total Count / Run Time) / Ideal Run Rate
Quality = Good Count / Total Count
OEE = Availability × Performance × Quality
An 8-hour shift of clamp manufacturing process (with no downtime) has an OEE of 0.90 performing at its designed speed and produces a total scrap of 45 units. What is the total number of units produced in the shift?
Show answer
Correct answer: 450