PREDICTIVE BUSINESS ANALYTICS

Sample Screening Test

Screening Test Details:
The screening test is designed to test basic statistical knowledge and logic for future programming in R.
There is no specific cutoff score for admission. The test is designed to allow us to select those applicants
who will do well in the program. The test will be 20 multiple-choice questions and applicants will have
30 minutes to complete it.
Sample Questions:
Below are five sample questions that students can use to prepare for the test. The answers to each
question appear at the end of the test:
1. Majestik Inc. is a consumer apparel marketer. In 2010, it changed its marketing theme to Lifestyle
marketing. In 2011, it was surprised to see that even though its sales in the segment of the younger
population (< 35 years old) increased 20% to $600,0000, its sales in the older (>35 years old)
segment reduced 40% to $240,000. What was the overall growth in Majestik's sales from 2010 to
2011?
A. Increased 6.7%
B. Decreased 6.7%
C. Increased 7%
D. Decreased 7%

2. Plymouth Corporation, a services marketing company, wants to reduce its cost of borrowing for its
operations for fiscal year 2010. In 2009, it had borrowed $150 Million from Elite Bank at a cost of
7.7%. In 2010, it can borrow from two sources: either Elite Bank or Canara Bank. Plymouth can
borrow up to $200 Million at 8% interest from Elite, or up to $50 Million from Canara Bank at 7%. If
the total loan amount needed for operations does not change from the amount needed in 2009, how
much should Plymouth borrow from Elite and Canara Banks in 2010 so that its total cost of borrowing
remains 7.7%?
A. $100 Million from Elite Bank and the rest from Canara bank
B. $105 Million from Elite Bank and the rest from Canara bank
C. $110 Million from Elite Bank and the rest from Canara bank
D. $115 Million from Elite Bank and the rest from Canara Bank
E. None of the above

3. A company's sales at the end of year 2000 were $40,000. If sales grew at a cumulative annual growth
rate (CAGR) of 5% for 5 years from 2001-2004, and declined at 3% (CAGR) for three years after that,
what were the sales of the company at the end of 2007?
A. $46,593
B. $47,583
C. $45,483
D. None of the above
4. The equation Sales = Sales + 1 is most likely:
A. Typographical error
B. Mathematically impossible
C. A part of a computer program
D. None of the above
5. A production floor in a manufacturing company has 10 machines that can operate up to 8 hours
daily. Five (5) of these machines working 2 hours daily, can manufacture of a Widget. How many
machines are needed to be operated for 5 hours a day to completely manufacture 5 Widgets?
A. 125 machines
B. 25 machines
C. 20 machines
D. None of the above



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Screening Test Sample Answers:
Question 1: B
Question 2: B
Question 3: A
Question 4: C
Question 5: C