Question 1
What distinguishes an inferior good regarding its relationship with income?
Demand increases with rising income
Demand decreases as income increases
Its demand curve remains unaffected by income changes
It has no substitutes in the market
Business Data Management End Term: 28 April 2024 (January 2024 term)
The IIT Madras BS Business Data Management (BDM) End Term paper sat on 28 Apr 2024, in the January 2024 term: 23 questions for 30 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.
- 23
- 30
- 180 min
- 19
- 3
- 1
Show answer
Correct answer
Demand decreases as income increases
Question 2
A manufacturer finds that over the past year, there has been a shift in consumer preference within the two-wheeler market: the demand for scooters has decreased by 10%, whereas the demand for motorcycles, especially higher-capacity models, has increased by 15%. Given this trend, how should the manufacturer adjust its product portfolio?
Increase production of scooters to clear out existing inventories.
Shift manufacturing focus towards higher-capacity motorcycles to meet rising demand.
Keep the production rates the same, expecting the market to stabilize.
Focus exclusively on high-capacity motorcycles and cease scooter production.
Show answer
Correct answer
Shift manufacturing focus towards higher-capacity motorcycles to meet rising demand.
Question 3
If a pivot table analysis reveals that a lender’s portfolio has shifted from predominantly commercial loans to a more diversified portfolio including significant amounts of retail and microfinance loans over the years, what might this indicate about the lender’s strategic shift?
Diversification to mitigate risk
Shifting market demand
Regulatory Changes Influencing Lending Practices
Not enough data is given in the situation to determine
Show answer
Correct answer
Not enough data is given in the situation to determine
Question 4
Identifying and eliminating outliers in revenue data is crucial because they can:
Significantly skew overall data analysis and interpretation.
Improve the accuracy of the data set.
Decrease the workload involved in data processing.
They do not provide any useful insights
Show answer
Correct answer
Significantly skew overall data analysis and interpretation.
Question 5
How does an increase in the ordering cost per order affect the EOQ?
It increases the EOQ.
It decreases the EOQ.
It does not affect the EOQ.
It causes the EOQ to fluctuate unpredictably.
Show answer
Correct answer
It increases the EOQ.
Question 6
Which of the following is an example of the anchoring effect used as a nudge on e-commerce websites?
Presenting a high initial price next to the sale price to make the discount appear more significant
Offering every product at a flat discount rate
Displaying the most expensive items exclusively
Always showing only the lowest price available for every product
Show answer
Correct answer
Presenting a high initial price next to the sale price to make the discount appear more significant
Question 7
What is the underlying rationale for PayBuddy offering a BNPL service without charging interest or late fees?
To accumulate a large unpaid debt that can be written off for tax benefits.
To engage customers more deeply, increasing transaction volumes and platform loyalty.
Assuming that late fees and interest can be retroactively applied for long-term profit.
To attract regulatory scrutiny as a marketing stunt to gain public attention.
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Correct answer
To engage customers more deeply, increasing transaction volumes and platform loyalty.
Question 8
If a company identifies a seasonal pattern in their sales data, how should this influence their inventory management strategy?
Increase inventory levels uniformly throughout the year to avoid any potential stockouts.
Adjust inventory levels based on historical sales data to match the anticipated seasonal demand.
Reduce inventory levels during peak seasons to minimize holding costs.
Keep inventory levels constant, ignoring seasonal trends to simplify logistics.
Show answer
Correct answer
Adjust inventory levels based on historical sales data to match the anticipated seasonal demand.
Question 9
How does the concept of homogeneous regions benefit the sampling process in surveys?
Ensures a diversity of samples by mixing different regions indiscriminately
Eliminates bias by selecting samples from areas with similar characteristics
Focuses solely on urban areas for increased data accuracy
Prioritizes high-income regions to reflect economic prosperity
Show answer
Correct answer
Eliminates bias by selecting samples from areas with similar characteristics
Question 10
In strategic manpower planning, which of the factors is the least relevant for determining the number of employees needed?
The historical turnover rate within the industry
The predicted revenue for the next fiscal year
The specific business objectives and forthcoming projects
The current unemployment rate in the market
Show answer
Correct answer
The current unemployment rate in the market
Question 11
In the context of IT services, what is the primary purpose of maintaining a bench or buffer of employees?
To have resources readily available for unforeseen project needs.
To keep underperforming employees off critical projects.
To reduce the company’s overall payroll expenses.
To comply with industry-standard HR practices.
Show answer
Correct answer
To have resources readily available for unforeseen project needs.
Question 12
Based on the above data, answer the given subquestions.
If you color-code the data points on the scatter plot by "Product Category," which of the following statements would likely be true?
All categories will cluster together, showing no distinct grouping.
Electronics might form a cluster with higher revenue compared to other categories.
Clothing will show the highest sales quantity and revenue.
Home Appliances will demonstrate the least variability in sales quantity and revenue.
Show answer
Correct answer
Electronics might form a cluster with higher revenue compared to other categories.
Question 13
Based on the above data, answer the given subquestions.
Considering the given data, which category has the highest average revenue per unit?
Home Appliances
Clothing
Electronics
Show answer
Correct answer
Home Appliances
Question 14
The teacher wants to assign students grades based on their Maths marks using the IF function. Which Excel formula represents the correct structure for this conditional grading?
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Correct answer
Question 15
Four candidates are being considered for a Software Engineer position. The hiring committee has rated them based on the number of relevant skills they possess, the number of days they can join in, the number of relevant certificates they hold, and their years of relevant experience. Give all the criteria the same weightage. Evaluate the data below and determine which candidate should be ranked the highest based on the given criteria (more skills, more certificates, more experience are better; fewer days to join is better).
Candidate A:
● Number of relevant skills: 12
● Days to join: 30
● Number of relevant certificates: 5
● Years of relevant experience: 3
Candidate B:
● Number of relevant skills: 15
● Days to join: 45
● Number of relevant certificates: 3
● Years of relevant experience: 4
Candidate C:
● Number of relevant skills: 10
● Days to join: 20
● Number of relevant certificates: 7
● Years of relevant experience: 5
Candidate D:
● Number of relevant skills: 14
● Days to join: 15
● Number of relevant certificates: 4
● Years of relevant experience: 6
Choose the correct ranking of the candidates from most suitable to least suitable:
Candidate D > Candidate C > Candidate A or Candidate B
Candidate B > Candidate A > Candidate C, Candidate D
Candidate D > Candidate A > Candidate C > Candidate B
Candidate C > Candidate D > Candidate A or Candidate B
Show answer
Correct answer
Candidate D > Candidate C > Candidate A or Candidate B
Question 16
A company has noticed that its average days of inventory are significantly lower than the industry standard. Which of the following statements describes the potential consequences of this situation?
Increased carrying costs due to holding excess inventory.
Higher likelihood of stockouts, leading to possible lost sales.
Less need for warehouse space, reducing storage cost inefficiencies.
Lower inventory obsolescence risks and reduced waste.
Show answer
Correct answers
Higher likelihood of stockouts, leading to possible lost sales.
Less need for warehouse space, reducing storage cost inefficiencies.
Question 17
Considering the sales data and inventory levels for SKU cities (distribution centres) like Hyderabad, Cochin, and Madras, what could be a significant risk if the average sales drastically change over a short period?{Select All that apply}
Overestimation of inventory needs leading to excess stock.
Underestimation of lead times for inventory replenishment.
Inaccurate calculation of the total opening stock.
Misalignment between sales forecasts and actual sales data.
Show answer
Correct answers
Overestimation of inventory needs leading to excess stock.
Underestimation of lead times for inventory replenishment.
Inaccurate calculation of the total opening stock.
Misalignment between sales forecasts and actual sales data.
Question 18
Which of the following best describes the strategic advantage of internal sourcing?{Select All that apply}
It eliminates the need for an external recruitment process entirely.
It guarantees a 100% success rate in employee performance post-transition.
Could speed up the process of staffing the job position
Better familiarity reduces the risk that selected person may turn out to be incompetent
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Correct answers
Could speed up the process of staffing the job position
Better familiarity reduces the risk that selected person may turn out to be incompetent
Question 19
Imagine, you are an efficiency consultant hired by ABC Corp, a company that manufactures automotive parts. Your first assignment is to evaluate the performance of their primary production line. The provided data includes:
● The planned production time for last quarter was 700 hours.
● Unexpectedly, the line experienced 60 hours of lost time.
● The expected assembly rate of the line was 200 units per hour.
● However, the actual rate achieved was 180 units per hour.
● Over the quarter, 14,000 units were assembled.
● Out of these, 700 units were found to be defective.
Calculate the OEE for ABC Corp's production line and provide the result.
Show answer
Correct answer: 78 (accepted within ±1)
Question 20
Let's consider a mobile gaming company that has launched a feature test to see the impact of a new game tutorial version aimed at improving player retention and in-game purchases.
| User_ID | Group | Daily_Playtime_Minutes | In_Game_Purchase | Game_Version | Player_Experience_Level |
|---|---|---|---|---|---|
| 1 | A | 40 | 0 | Old | Beginner |
| 2 | B | 30 | 1 | New | Intermediate |
| 3 | A | 35 | 1 | Old | Advanced |
| 4 | B | 30 | 0 | New | Beginner |
| 5 | A | 50 | 0 | Old | Intermediate |
| 6 | B | 50 | 1 | New | Advanced |
| 7 | A | 20 | 1 | Old | Beginner |
| 8 | B | 55 | 0 | New | Intermediate |
| 9 | A | 75 | 1 | Old | Advanced |
| 10 | B | 30 | 1 | New | Beginner |
| 11 | A | 70 | 1 | Old | Intermediate |
| 12 | B | 45 | 1 | New | Advanced |
| 13 | A | 50 | 0 | Old | Beginner |
| 14 | B | 65 | 0 | New | Intermediate |
| 15 | A | 75 | 1 | Old | Advanced |
| 16 | B | 35 | 1 | New | Beginner |
| 17 | A | 80 | 0 | Old | Intermediate |
| 18 | B | 80 | 1 | New | Advanced |
| 19 | A | 65 | 1 | Old | Beginner |
| 20 | B | 70 | 0 | New | Intermediate |
Based on the above data, answer the given subquestions.
Evaluate the influence of the new game tutorial on player engagement. How does the average Daily_Playtime_Minutes compare between the two groups?
Group B has significantly higher average playtime, indicating the new tutorial is more engaging.
Group A shows higher average playtime, suggesting the old tutorial is more effective.
No significant difference in playtime between the groups, indicating the new tutorial has minimal impact.
The average playtime is higher in Group B, but not significantly, suggesting a slight advantage of the new tutorial.
Show answer
Correct answer
Group A shows higher average playtime, suggesting the old tutorial is more effective.
Question 21
Let's consider a mobile gaming company that has launched a feature test to see the impact of a new game tutorial version aimed at improving player retention and in-game purchases.
| User_ID | Group | Daily_Playtime_Minutes | In_Game_Purchase | Game_Version | Player_Experience_Level |
|---|---|---|---|---|---|
| 1 | A | 40 | 0 | Old | Beginner |
| 2 | B | 30 | 1 | New | Intermediate |
| 3 | A | 35 | 1 | Old | Advanced |
| 4 | B | 30 | 0 | New | Beginner |
| 5 | A | 50 | 0 | Old | Intermediate |
| 6 | B | 50 | 1 | New | Advanced |
| 7 | A | 20 | 1 | Old | Beginner |
| 8 | B | 55 | 0 | New | Intermediate |
| 9 | A | 75 | 1 | Old | Advanced |
| 10 | B | 30 | 1 | New | Beginner |
| 11 | A | 70 | 1 | Old | Intermediate |
| 12 | B | 45 | 1 | New | Advanced |
| 13 | A | 50 | 0 | Old | Beginner |
| 14 | B | 65 | 0 | New | Intermediate |
| 15 | A | 75 | 1 | Old | Advanced |
| 16 | B | 35 | 1 | New | Beginner |
| 17 | A | 80 | 0 | Old | Intermediate |
| 18 | B | 80 | 1 | New | Advanced |
| 19 | A | 65 | 1 | Old | Beginner |
| 20 | B | 70 | 0 | New | Intermediate |
Based on the above data, answer the given subquestions.
Which Player_Experience_Level benefited most from the new game tutorial in terms of In_Game_Purchase?
Beginners are making much more purchases with the new tutorial.
Intermediate players show a significant increase in purchases.
Advanced players have a higher purchase rate with the new tutorial.
There's no noticeable difference in purchase behavior across experience levels.
Show answer
Correct answer
There's no noticeable difference in purchase behavior across experience levels.
Question 22
Let's consider a mobile gaming company that has launched a feature test to see the impact of a new game tutorial version aimed at improving player retention and in-game purchases.
| User_ID | Group | Daily_Playtime_Minutes | In_Game_Purchase | Game_Version | Player_Experience_Level |
|---|---|---|---|---|---|
| 1 | A | 40 | 0 | Old | Beginner |
| 2 | B | 30 | 1 | New | Intermediate |
| 3 | A | 35 | 1 | Old | Advanced |
| 4 | B | 30 | 0 | New | Beginner |
| 5 | A | 50 | 0 | Old | Intermediate |
| 6 | B | 50 | 1 | New | Advanced |
| 7 | A | 20 | 1 | Old | Beginner |
| 8 | B | 55 | 0 | New | Intermediate |
| 9 | A | 75 | 1 | Old | Advanced |
| 10 | B | 30 | 1 | New | Beginner |
| 11 | A | 70 | 1 | Old | Intermediate |
| 12 | B | 45 | 1 | New | Advanced |
| 13 | A | 50 | 0 | Old | Beginner |
| 14 | B | 65 | 0 | New | Intermediate |
| 15 | A | 75 | 1 | Old | Advanced |
| 16 | B | 35 | 1 | New | Beginner |
| 17 | A | 80 | 0 | Old | Intermediate |
| 18 | B | 80 | 1 | New | Advanced |
| 19 | A | 65 | 1 | Old | Beginner |
| 20 | B | 70 | 0 | New | Intermediate |
Based on the above data, answer the given subquestions.
Considering the new tutorial's impact, which statement best reflects the data observed?
The new tutorial has universally improved in-game purchases across all player levels.
Only advanced players show a significant uptick in daily playtime with the new tutorial.
All players have decreased their playtime, potentially indicating a dislike for the new tutorial.
Beginners and advanced players show increased engagement, but intermediate players do not.
Show answer
Correct answer
All players have decreased their playtime, potentially indicating a dislike for the new tutorial.
Question 23
Let's consider a mobile gaming company that has launched a feature test to see the impact of a new game tutorial version aimed at improving player retention and in-game purchases.
| User_ID | Group | Daily_Playtime_Minutes | In_Game_Purchase | Game_Version | Player_Experience_Level |
|---|---|---|---|---|---|
| 1 | A | 40 | 0 | Old | Beginner |
| 2 | B | 30 | 1 | New | Intermediate |
| 3 | A | 35 | 1 | Old | Advanced |
| 4 | B | 30 | 0 | New | Beginner |
| 5 | A | 50 | 0 | Old | Intermediate |
| 6 | B | 50 | 1 | New | Advanced |
| 7 | A | 20 | 1 | Old | Beginner |
| 8 | B | 55 | 0 | New | Intermediate |
| 9 | A | 75 | 1 | Old | Advanced |
| 10 | B | 30 | 1 | New | Beginner |
| 11 | A | 70 | 1 | Old | Intermediate |
| 12 | B | 45 | 1 | New | Advanced |
| 13 | A | 50 | 0 | Old | Beginner |
| 14 | B | 65 | 0 | New | Intermediate |
| 15 | A | 75 | 1 | Old | Advanced |
| 16 | B | 35 | 1 | New | Beginner |
| 17 | A | 80 | 0 | Old | Intermediate |
| 18 | B | 80 | 1 | New | Advanced |
| 19 | A | 65 | 1 | Old | Beginner |
| 20 | B | 70 | 0 | New | Intermediate |
Based on the above data, answer the given subquestions.
What does the distribution of In_Game_Purchases in Group B suggest about the new tutorial’s effectiveness?
It's highly effective, as most players increased their purchases.
Effectiveness is moderate; only some players increased their purchases.
The new tutorial has no clear impact on purchase behavior.
It is less effective; fewer players made purchases after the introduction of the new tutorial.
Show answer
Correct answer
It is less effective; fewer players made purchases after the introduction of the new tutorial.