CAT4MBA

In caselets data are given in the form of paragraph. No charts/graphs are provided with the data. Caselets vary considerably in length, in the amount of information contained, in different sentences and paragraph. While reading a caselets it s always advisable to underline the important fact and figures and if necessary make your own table/chart/graphs for solving the questions.

In CAT Caselets can be asked either/both in Quants and Data Interpretation section and it s similar to the Reading Comprehension part in English Usage section. The best way to mastery caslets is to practice

Example 1:

Directions for Q. 1 to 5: Refer to the following information and the answer the following questions.

People Power Corporation presently employs three Managers (A, B and C) and five recruitment agents (D, E, F, G and H). The company is planning to open a new office in San Jose to manage placement of software professionals in the US. It is planning to relocate two of the three managers and three of the five recruitment agents to the office at San Jose. As it is an organization which is
highly people oriented the management wants to ensure that the individuals who do not function well together should not be made as a part of the team going to the US.

The following information was available to the HR department of People Power Corporation.

• Managers A and C are at each others throat and therefore cannot be sent as a team to the new office.
• C and E are excellent performers in their own right. However, they do not function together as a team. They should be separated.
• D and G have had a major misunderstanding during the last office picnic. After the picnic these two have not been in speaking terms and should therefore not be sent as a team.
• D and F are competing for a promotion that is due in another 3 months. They should not be a team.

Q1. If D goes to the new office which of the following is (are) true?
I. C cannot go II. A cannot go III. H must also go
(a) I only
(b) II and III only
(c) I and III only
(d) I, II and III

2. If A is to be moved as one of the Managers, which of the following cannot be a possible working unit?
(a) ABDEH
(b) ABFGH
(c) ABEGH
(d) ABDGH

3. If C and F are moved to the new office, how many combinations are possible?
(a) 4
(b) 1
(c) 3
(d) 5

4. Given the group dynamics of the Managers and the recruitment agents, which of the following is sure to find a berth in the San Jose office?
(a) B
(b) H
(c) G
(d) E

5. If C is sent to the San Jose office which member of the staff cannot go with C?
(a) B
(b) D
(c) G
(d) F

ANSWERS: 1. (c) 2. (d) 3. (b) 4. (a) 5. (b)

Example 2

Ghosh Babu took voluntary retirement in Dec. 1991 and received a certain amount of money as retirement benefits. On Jan 1, 1992, he invested the entire amount in shares. At the end of the month, he sold all his shares and realised 25% profit. On Feb 1, he reinvested the entire amount in shares which he sold at the end of the month at a loss of 20%. Again, he invested the entire amount on Mar 1 in a new company. At the end of the month, he sold the new company to a friend and realised a profit of 20% in the process. He invested the entire amount in shares on Apr 1, which he sold at the end of the month for Rs. 1,08,000 incurring a loss of 10%.

1. What is the amount of retirement benefits received by Ghosh Babu?
a) Rs. 1,08,000
b) Rs. 1,25,000
c) Rs. 1,20,000
d) Rs. 1,00,000

2. The percentage profit received by Ghosh Babu between Jan 1 and Apr 30 is:
a) 8.00%
b) 15.00%
c) - 10.00%
d) None of these

3. The amount of loss incurred by Ghosh Babu based on his operation in Apr 1992 is:
a) Rs. 25,000
b) Rs. 12,000
c) Rs. 20,000
d) Rs. 8,000

4. The maximum amount invested by Ghosh Babu in any one month was in:
a) January
b) February
c) March
d) April

Answers:
1. d Let the amount received by Ghosh Babu in Dec. 1991 be Rs. x, as retirement benefits:
Therefore, investment in the month of Jan 1992 = 100
Profit of 25% at the end of Jan 1992.
Hence, investment in the month of Feb 1992 = 125
Loss of 20% at the end of Feb 1992
Hence, investment in the month of March 1992 = 100
Profit of 20% at the end of March 1992
Hence, investment in the month of April 1992 = 120
Loss of 10% at the end of April 1992
Therefore the amount left at the end of April 1992 = 108
Amount at the end of April 1002 = Rs. 1,08,000
Therefore, simply equating figures, he would have started with Rs 1,00,000
2. a % Profit between Jan 1 and Apr 30 = (1.08x - x/x) X 100
3. b Investment in the month of April = Rs. 1,20,000
Amount received at end of April = Rs. 1,08,000
Therefore, Loss = Rs. 12,000
4. b Maximum amount invested by Ghosh Babu is in the month of February = Rs. 1,25,000