XAT 2018 Preparation for decision making

Last Updated - March 10 2018

Judgment Making is the most important and scoring section of XAT. This section tests the judgment making the ability of aspirants. The number of questions asked generally varies from 20 to 25. This section requires the logical understanding of various situations. Questions in judgment making involve a situation like a case let and aspirant is expected to find the solution and also the reason behind that situation. First Questions on Judgement making were asked in Analytical Reasoning, but from 2012 onwards it is a separate section which accounts for - Calculation of percentile; Calculation of sectional XAT cut off Shortlisting of aspirants for GDPI.

Following is the number of questions asked from this section in recent years-

SectionNo of Questions in XAT 2015No of Questions in XAT 2014No of questions in XAT 2013
Judgement Making232425


Question type asked

This section consists of passages with certain information which is followed by a set of 4-5 questions. Each of the questions is again followed by 4-5 judgment making response options. These passages contain behavioral and mathematical judgment making questions.

In behavioral type questions of judgment making the section, you will get a scenario in which the protagonist is in a dilemma, and you are supposed to choose the best possible judgment for him/her. Generally, situations are from backgrounds, such as Management, Manufacturing, IT, Politics etc.

The mathematical judgment making questions are easy. However, it is time-consuming. In these type questions, you may find DI or mathematical reasoning sets.

Attempting 15 to 18 questions in 45 minutes is sufficient. Although the sectional cutoff for this section generally varies 9 to 12 questions.

Example of Questions

Response question 1-2 based on information that is offered.

Saral Co. The organization has a history of participative judgment making, wherein people deliberate openly about pros and cons of every important judgment, and a broad consensus is taken before taking the final judgment. every employee gets a salary proportional to the sales achieved. A new General Manager (GM) joined during the beginning of this month and challenged the organization's sole focus on sales to determine salaries. is operating in seven north-eastern states of the country. He urged the top management to comprise two more additional parameters in determining the salaries of the employees, viz. collection of information about contestants and the quality of relationship with the retailers In Saral Co.


Ques. Manohar, the highest earning employee for the last three years, vehemently opposes the GM's proposal. Which of the following could be the most likely reason for him to oppose the proposal?

A. He considers the proposal as a serious threat to his favorable position in Saral Co.

B. He is not interested in collecting the information regarding contestants.

C. No clarity regarding the relative importance of the three parameters.

D. He is not interested in maintaining the quality relationship with retailers.

E. He may require to work harder to earn the highest salary.

Ques. The top management of Saral Co. refused to implement the proposal of new GM from the beginning of next month. Which of the following could be the most justified reason for the management's refusal?

A. To ensure that no manager will get credit for a major change soon after joining.

B. To avoid attracting criticism for their failure to implement a similar scheme.

C. His past experience is limited to seven northeastern states only.

D. The GM is new to the organization and he would require some time to implement the new plan.

E. The top management would require time to deliberate and get consensus.

Read the following case-let and response the question nos. (1-4) that follow

Krishna Reddy was the head of a pharmaceutical company that was trying to develop a new product. They further assessed that a new drug was likely to be successful 50% of times. Reddy, along with his friend Prabhakar Rao, assessed that such products had mixed success. Reddy and Rao realized that if a new product (a drug) was a success, it may result in sales of 100 crores but if it is unsuccessful, the sales may be only 20 crores. Cost of launching the new drug was likely to be 50 crores.

Ques. How much profit can the company expect to earn if it launches the new drug (suppose there are no additional costs)?

A. 12 crores

B. 10 crores

C. 10.5 crores

D. 11 crores

E. 11.5 crores

Now, Reddy and Rao were in a quandary whether the company should go ahead and market the drug. They contacted Raj Adduri, a common friend for advice. Adduri was of the opinion that given the risky nature of launch, it may be a better idea to test the market. Further, when test marketing results were unfavorable; the products have been successful 30% of the times. Adduri told them the earlier test marketing results have been favorable 70% of times and success rate of products favorably tested was 80%. Rao and Reddy realized test marketing would cost 10 crores.

Ques. How much profit can the company expect to make if the product is launched after favorable test marketing results (assume there are no additional costs)?

A.11.5 crores

B.10 crores

C.8.5 crores

D.13.8 crores

E. 6 crores

Ques. What is the probability of product failure if Reddy and Rao decide to test market it?

A. 0.21

B. 0.35

C. 0.14

D. 0.28

E. Cannot be computed

Ques. If Rao and Reddy decide to launch the product despite unfavorable test marketing, how much profit can the company expect to earn?

A. - 13.2 crores

B. -36.8 crores

C. -46.8 crores

D. -16 crores

XAT 2018 How to approach right choice

The first and foremost thing is to read and understand the given data, facts, information in the passage. It is advised to go via the information with an open mind and read it attentively. One thing you should remember while solving DM section is that always go with the most ethical choice. It doesnโ€™t matter whether you have an experience in the field or not, whenever you have confusion between two choices, one giving you materialistic benefits and other being the right thing to do, without a shred of the doubt go with the option of the right thing to do.

In most of the questions, you will get an option wherein, the protagonist is not doing anything. No action in any situation is the worst possible judgment.  Eliminating this option would definitely give you with possible options. This is the option you should outrightly reject.

XAT 2018 Preparation Strategy

The best possible way to improve yourself in the DM section is to solve as many mock papers as possible, preferably earlier years XAT papers. What is the rationale behind not choosing other three options? However, while solving, donโ€™t just understand why given response key is correct; this may work in verbal section but in DM analyze why other three options are incorrect! This strategy will improve your understanding of DM section.


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