Executive Assessment (EA) — Questions and Answers

Question 1: Amid the present wave of job redundancies for skilled but unemployed youth, the publication of an encouraging report on the viability of garage startup enterprises has led the Federal government to set up an investment fund, under its Federal light-industry program, to provide capital for such enterprises. This plan has drawn opposition from various quarters; the critics claim that similar funds, also set up under the Federal light-industry program, that aim to stimulate small enterprises frequently end up harming other American social groups unconnected to these enterprises. Which of the following best provides support for the claim made by the critics above?

The funding of the Federal light-industry program depends on the reallocation of resources earmarked for disadvantaged groups. (Correct answer)
The debate concerning the Federal light-industry program created a backlog in the Federal legislative schedule.
The union for Federal light-Industry workers was the prime source of the claim.
Garage enterprises in Washington State now produce almost 12% of the vehicle components previously imported from South East Asia.
Programs like Federal light-industry programs have yielded great results in past.

Correct answer: The funding of the Federal light-industry program depends on the reallocation of resources earmarked for disadvantaged groups.

Argument construction The US is grappling under job redundancies for skilled but unemployed youth. To address this problem, Federal government is planning to set up an investment fund to provide capital for garage startup enterprises. It can be understood that with the help of capital, the skilled but unemployed persons could start their small business (garage startup enterprises). Many criticized this move; they pointed out that Federal light-industry programs (one of which will be the proposed garage enterprise support program) frequently harm the interest of other US social groups (other small businesses & unskilled individuals) that do not belong to the categories of enterprise served by these programs. Conclusion: Federal light-industry programs will adversely impact those who are not part of Federal light-industry programs. Predict a Strengthener By providing new information, we have to strengthen the conclusion that if the proposed investment fund supports Federal light-industry programs, the other US social groups that are not the beneficiaries of the program will suffer. Predictive Strengthener 1: The types of products and services that the 'other US social groups' (Category 1) deal in and that the 'skilled unemployed' group (Category 2) that would be the beneficiary of Federal light-industry programs deals in are same. So, there is a competition between Categories 1 and 2 and Category 2 will grow at the expense of Category 1. Predictive Strengthener 2: Currently, the Federal government does not have any program to support the other US social groups (Category 1), thereby making their position vulnerable if Category 2 grows strong. Predictive Strengthener 3: To be the beneficiaries of Federal light-industry programs, special qualification is mandatory that the other US social groups does not possess.

Question 2: A project requires 240 person-hours. Team X works at 30 hours/day and Team Y works at 10 hours/day. If Team X works alone for 4 days, how many days does Team Y need to finish AND what is the total number of days elapsed?

Y needs 8 days; Total=12 days
Y needs 10 days; Total=14 days
Y needs 12 days; Total=16 days (Correct answer)
Y needs 12 days; Total=12 days

Correct answer: Y needs 12 days; Total=16 days

Team X completes 4×30=120 hours; remaining=120 hours; Team Y: 120/10=12 days; total=4+12=16 days.

Question 3: Does a bag contain more red balls than blue balls? (1) The bag contains 12 red balls. (2) The bag contains 9 blue balls.

Statement (1) alone is sufficient.
Statement (2) alone is sufficient.
Both statements together are sufficient, but neither alone. (Correct answer)
Neither statement is sufficient.

Correct answer: Both statements together are sufficient, but neither alone.

Together: 12 red > 9 blue, so yes; neither statement alone provides comparison without knowing the other color count.

Question 4: Is xy > x? (1) y > 1. (2) x > 0.

Both statements together are sufficient, but neither alone. (Correct answer)
Statement (1) alone is sufficient.
Statement (2) alone is sufficient.
Neither statement is sufficient.

Correct answer: Both statements together are sufficient, but neither alone.

If y > 1 and x > 0, then xy > x (multiplying both sides of y>1 by positive x). Neither alone is sufficient.

Question 5: A firm plans to cut its marketing budget to reduce costs. The assumption is that this will not significantly reduce sales. Which of the following most challenges this assumption?

The firm's products have a loyal customer base.
The firm's products have high brand recognition.
Marketing budgets are typically 10% of revenue.
The firm's top competitors are increasing their marketing spend. (Correct answer)

Correct answer: The firm's top competitors are increasing their marketing spend.

If competitors increase marketing while the firm cuts back, the firm risks losing market share, threatening the sales stability assumption.

Question 6: Passage: 'The ancient city of Carthage, once Rome's most formidable rival, was completely destroyed in 146 BCE. Contemporary historians describe the Romans as salting the earth to prevent regrowth, though modern scholars debate whether this occurred. What is certain is that Carthage was systematically dismantled, with survivors enslaved or dispersed.' What can be inferred about the relationship between Rome and Carthage?

Modern historians have fully confirmed all ancient accounts of the destruction
Carthage surrendered peacefully, which led to its gradual decline
Rome and Carthage were trading partners who occasionally disputed territories
The rivalry was significant enough that Rome sought to permanently eliminate Carthage (Correct answer)

Correct answer: The rivalry was significant enough that Rome sought to permanently eliminate Carthage

The systematic and complete destruction — with survivors enslaved or dispersed — implies Rome intended permanent elimination, reflecting an intense and serious rivalry.

Question 7: The Senator Wiley damned the Frequent Flyer schemes, now operated by virtually all major American airlines, as nothing less than a bribe to acquire the accounts of major corporations that are willing to pay excessively high sums to buy Frequent Flyer discount coupons in order to give untaxed rewards to employees. To make the discounted ticket prices viable, airlines raise the initial marked price of the tickets. Thus, the price of tickets for the general public is kept artificially high. Walter Healey, the Vice President of American Airlines, responded to the criticism by saying the Frequent Flyer scheme was enjoyed by millions of Americans who were able to acquire Frequent Flyer tokens from supermarket purchases and credit card transactions. Which of the following, if true, best exposes the flaw in Healey's response to Wiley's criticism?

Most airline companies offer bonus tokens for long-haul flights.
Ticket prices are regularly reviewed by a committee of airline representatives.
The price of tickets booked under Frequent Flyer schemes is often as low as 50% of the regular ticket price.
Only a few supermarket chains and credit card companies offer Frequent Flyer tokens to customers. (Correct answer)
Fewer people acquire Frequent Flyer tokens through supermarket purchases than through credit card transactions.

Correct answer: Only a few supermarket chains and credit card companies offer Frequent Flyer tokens to customers.

Argument construction A Senator criticized the Frequent Flyer schemes, operated by almost all major American airlines, saying it is like giving bribe to major corporations to acquire their accounts. These corporation pay excessively high sums to buy Frequent Flyer tokens from airlines and pass these discount-seeking tokens to their employees to give them untaxed rewards. In turn, upon encashing the tokens, the employees get discounted airline tickets. This implies that the price of tickets for the general public is kept artificially high and compared to privileged employees, they end up paying more. However, the VP of American Airlines, responded to the criticism by saying the Frequent Flyer scheme was also enjoyed by millions of Americans who could get Frequent Flyer tokens from supermarket purchases and credit card transactions. Predict a Weakener Let's write down the claim. Claim: Benefit of Frequent Flyer scheme is not exclusive to major corporations; general public can also get the same benefit as the employees of major corporations do. Our job is to find a flaw in the claim, or in other words, we need to weaken the claim. What if a large number of airline tickets are reserved for major corporations? Well, in that case there would be only a few airline tickets available for general public. So, though they may have Frequent Flyer tokens, they cannot utilize them. Predictive Weakener 1: A large number of airline tickets are reserved for major corporations. What if there are only a few supermarkets and only a few credit card companies that offer Frequent Flyer tokens? Well, in that case, only a few people can get the benefit of the scheme. Predictive Weakener 2: Only a few supermarkets and credit card companies offer Frequent Flyer tokens. There can be one or two more predictive weakeners; however, you need not think of more than two.

Question 8: A store sold 200 items. What fraction were defective? (1) 40 items were defective. (2) 160 items were non-defective.

Both statements together are sufficient, but neither alone.
Statement (2) alone is sufficient.
Statement (1) alone is sufficient.
Each statement alone is sufficient. (Correct answer)

Correct answer: Each statement alone is sufficient.

Statement (1): 40/200 = 1/5; Statement (2): 40 defective (200−160) → 40/200 = 1/5; each alone is sufficient.

Question 9: Message 1: a shipment of 600 units arrived. Message 2: quality control rejects 15% of units. Message 3: the warehouse needs 520 units. Will the warehouse have enough after QC?

Exactly enough.
Cannot be determined.
Yes, with surplus.
No, there will be a shortfall. (Correct answer)

Correct answer: No, there will be a shortfall.

Accepted units = 600 × 85% = 510; warehouse needs 520; shortfall = 10 units.

Question 10: A company's net income is $1.2M. The tax rate is 25% and interest expense is $200K. What is operating income (EBIT) AND earnings before tax (EBT)?

EBIT=$1.6M, EBT=$1.4M
EBIT=$2.0M, EBT=$1.8M
EBIT=$1.8M, EBT=$1.6M (Correct answer)
EBIT=$1.4M, EBT=$1.2M

Correct answer: EBIT=$1.8M, EBT=$1.6M

EBT = net income / (1−tax) = $1.2M / 0.75 = $1.6M; EBIT = EBT + interest = $1.6M + $0.2M = $1.8M.

Question 11: Passage: 'The proliferation of subscription-based business models has fundamentally altered consumer relationships with products and services. Rather than discrete purchases, consumers now engage in ongoing contractual arrangements. This paradigm shift creates predictable revenue streams for companies while simultaneously locking consumers into recurring obligations.' The word 'paradigm' as used in the passage most nearly means:

A financial contradiction or discrepancy
A minor, incremental adjustment
A specific contractual arrangement
A fundamental model or pattern that defines how something works (Correct answer)

Correct answer: A fundamental model or pattern that defines how something works

The passage describes a fundamental change in how consumer-product relationships work, and 'paradigm' refers to the underlying model or framework that defines that relationship.

Question 12: Tab 1 lists three vendors' unit prices: $12, $15, and $10. Tab 2 shows order quantities of 500, 300, and 800 respectively. Which vendor incurs the highest total cost?

Vendor 2 ($15 × 300)
All are equal
Vendor 1 ($12 × 500)
Vendor 3 ($10 × 800) (Correct answer)

Correct answer: Vendor 3 ($10 × 800)

Vendor 3 total = $10 × 800 = $8,000; Vendor 1 = $6,000; Vendor 2 = $4,500.

Question 13: A manager argues against a new policy by saying, 'We've never had a data breach, so we don't need enhanced cybersecurity.' This is an example of which reasoning error?

False analogy
Circular reasoning
Slippery slope
Appeal to ignorance (Correct answer)

Correct answer: Appeal to ignorance

Concluding safety from the absence of past incidents is an appeal to ignorance — past absence of evidence is not evidence of safety.

Question 14: A train travels from City X to City Y in 4 hours at 75 mph. A car makes the same trip in 6 hours. What speed does the car travel AND what is the distance between the cities?

Car=60 mph, Distance=300 miles
Car=50 mph, Distance=300 miles (Correct answer)
Car=45 mph, Distance=270 miles
Car=50 mph, Distance=450 miles

Correct answer: Car=50 mph, Distance=300 miles

Distance = 4 × 75 = 300 miles; car speed = 300 / 6 = 50 mph.

Question 15: A project timeline table lists Start Date, End Date, and Duration (days). If sorted by Duration ascending, the first project has Start=Jan 1 and End=Jan 8. What is its duration?

9 days
7 days (Correct answer)
8 days
6 days

Correct answer: 7 days

Duration = End Date − Start Date = Jan 8 − Jan 1 = 7 days.

Question 16: A company's workforce is 60% full-time and 40% part-time. Full-time employees earn $70K/yr and part-time earn $30K/yr. The company has 100 employees. What is the total annual payroll AND average salary?

Payroll=$5.4M, Average=$54K
Payroll=$4.8M, Average=$48K
Payroll=$5.2M, Average=$52K
Payroll=$5.0M, Average=$50K (Correct answer)

Correct answer: Payroll=$5.0M, Average=$50K

60 full-time × $70K = $4.2M; 40 part-time × $30K = $1.2M; total = $5.4M; average = $54K.

Question 17: What is the area of circle O? (1) The diameter of circle O is 10. (2) The circumference of circle O is 10π.

Both statements together are sufficient, but neither alone.
Each statement alone is sufficient. (Correct answer)
Statement (2) alone is sufficient.
Statement (1) alone is sufficient.

Correct answer: Each statement alone is sufficient.

Both the diameter (r=5, area=25π) and circumference (r=5, area=25π) independently determine the area.

Question 18: TMC cars has been undergoing some dramatic changes. Gone is the image of a company focused solely upon the US. Now, both the products and the workforce have begun to reflect the global nature of the company. The new works team is composed of people from all over the world. All of the mechanical engineers are the product of an in-house training scheme although, as yet, none of the engineers specializing in hydraulics has won the prestigious Order of Merit bestowed by the Mechanical Engineers Union. So far, only winners of the Order of Merit have gone on to become department heads. If it is determined that all of the information provided by the passage is true, which of the following must also be true of the works team?

All of the winners of the Order of Merit have received in-house training.
None of the non-US mechanical engineers who are the products of in-house training have the Order of Merit.
None of the department heads are from the US.
None of the department heads who have specialized in hydraulics are the product of an in-house training scheme. (Correct answer)
All of the department heads have received the Order of Merit.

Correct answer: None of the department heads who have specialized in hydraulics are the product of an in-house training scheme.

Argument construction TMC cars company which used to focus only on the US is now a global company. Now, its products appeal globally and it inducts its employees from all over the world. All of the mechanical engineers have taken an in-house training scheme. No engineer specializing in hydraulics (a faculty of mechanical engineering) has won the prestigious Order of Merit (OoM). Only winners of the Order of Merit have become department heads. Predict an Inference By reading the argument, we see that there are a lot of data and we may have to deal with overlapping, partial overlapping, and non-overlapping sets. Let's list down the information. All mechanical engineers ⇒ In-house training No engineer specializing in hydraulics ⇒ Order of Merit (OoM) Order of Merit ⇒ Department heads Since only the winners of the Order of Merit (OoM) have become department heads, and no engineer specializing in hydraulics has won Order of Merit (OoM), the question arises, "Who qualifies to be the department head of hydraulics department?" We can infer that department head of hydraulics department must then be a non-engineer who won Order of Merit (OoM). Predictive Inference 1: Department head of hydraulics department is non-engineer, winner of Order of Merit (OoM). Also, since all the mechanical engineers are the product of in-house training, and the department head of hydraulics department must then be a non-engineer, it follows that and the department head of hydraulics department is not a product of in-house training. Predictive Inference 2: The department head of hydraulics department is not a product of in-house training.

Question 19: A survey shows 75% of customers prefer Brand A. The conclusion is that Brand A is the market leader. Which of the following, if true, would most strengthen this conclusion?

Brand A has the lowest price in the market.
The survey was conducted by Brand A's marketing department.
The survey sampled 10,000 randomly selected customers nationwide. (Correct answer)
Brand A spends the most on advertising.

Correct answer: The survey sampled 10,000 randomly selected customers nationwide.

A large, random, nationally representative sample increases the validity and generalizability of the survey finding.

Question 20: A scatter plot shows no visible pattern between two variables. The correlation coefficient is reported as r = 0.05. What does this suggest?

Moderate negative relationship
Strong positive relationship
Virtually no linear relationship (Correct answer)
A perfect relationship

Correct answer: Virtually no linear relationship

An r value close to zero indicates there is virtually no linear relationship between the two variables.

Question 21: The decline in the value of Europe's currency Euro is proving to be a mixed blessing. The German economy in particular is booming with rising exports in everything from heavy industry to hotels and service providers. The French economy is experiencing a similar phenomenon with a special emphasis on defense products. However, the European Central Bank has issued its starkest warning yet that the value of the Euro will decrease by at least 3 percent over the next six months; hence its intervention to control the depreciation of Euro will become vital. The European Central Bank assumes that ...

the German economy is performing better than the French economy
the superlative performance of the heavy industry, the hospitality sector, service providers, and the defense sector may not be enough to resurrect the sliding Euro
only two European countries – Germany and France – are performing above the European Central Bank's benchmark performance index
the exports from Germany and France are more than the exports from other European countries
the superlative performance of the German and French economies may not be enough to resurrect the sliding Euro (Correct answer)

Correct answer: the superlative performance of the German and French economies may not be enough to resurrect the sliding Euro

Argument construction Europe's currency Euro is declining; this is beneficial for some sectors and countries but a matter of worry for some sectors and countries. The German economy is performing well with sales in everything from heavy industry to hotels and service providers. The same goes for French economy with its special emphasis on defense products. Despite this, the European Central Bank (ECB) has warned that the value of the Euro will decrease by at least 3 percent over the next six months, thus, ECB must take measures to control the depreciation of Euro. Let's derive the conclusion. Conclusion: The Euro will depreciate by at least 3 percent over the next six months. Predict an Assumption Since the argument states that the decline in the value of Europe's currency Euro is proving a mixed blessing, some sectors or countries that are mainly exporters (they will get more value for their exported products) would benefit, while some sectors or countries that are mainly importers (they will have to pay more for their imported products) would suffer. Since ECB is certain that Euro would depreciate by at least 3%, it would assume that Europe's total import exceeds total export. Predictive Assumption 1: Europe's total import exceeds total export. The Europe continent comprises many countries and the argument talks about only two booming economies – Germany and France. Despite great performance by the German and French economies, the ECB's decision to intervene indicates that they would assume that most of the other economies must not be doing good. Predictive Assumption 2: Barring few countries such as Germany and France, many countries are facing tough times owing mainly to declining Euro.

Question 22: What is the value of x + y? (1) x − y = 4. (2) 2x + 2y = 20.

Statement (1) alone is sufficient.
Both statements together are sufficient, but neither alone.
Neither statement is sufficient.
Statement (2) alone is sufficient. (Correct answer)

Correct answer: Statement (2) alone is sufficient.

Statement (2): 2(x + y) = 20, so x + y = 10; sufficient alone.

Question 23: A pie chart shows revenue by region. North America = 45%, Europe = 30%, Asia = 20%, Other = 5%. If the company targets increasing Asia to 30%, and total revenue stays at $600M, how much additional revenue is needed from Asia?

$120M
$60M (Correct answer)
$90M
$30M

Correct answer: $60M

Current Asia = 20% × $600M = $120M; target = 30% × $600M = $180M; additional = $60M.

Question 24: Inequalities How many integers n are there such that 1<4n+4<24?

2
1
4
5 (Correct answer)
3

Correct answer: 5

Solve the inequality for n by isolating n. −3<4n<20, so −34<n<5. There are 5 integers that fulfill n (0, 1, 2, 3, 4).

Question 25: A worker completes 2/3 of a task. A second worker completes 1/4 of what remains. What fraction did the second worker complete AND what fraction of the original task remains?

Second=1/8, Remaining=3/8
Second=1/12, Remaining=1/4 (Correct answer)
Second=1/6, Remaining=1/4
Second=1/12, Remaining=1/3

Correct answer: Second=1/12, Remaining=1/4

Remaining after worker 1 = 1/3; worker 2 does 1/4 × 1/3 = 1/12; remaining = 1/3 − 1/12 = 3/12 = 1/4.

Question 26: A business argues: 'Our customer satisfaction score rose from 70% to 80%, proving our new training program works.' What is the flaw in this reasoning?

Customer satisfaction scores are unreliable metrics.
A 10-point increase is too small to be meaningful.
The training program cost more than the benefit.
The increase could be due to factors other than the training program. (Correct answer)

Correct answer: The increase could be due to factors other than the training program.

The argument commits the post hoc fallacy — assuming the training caused the improvement without ruling out other causes.

Question 27: Memo 1: total project budget = $1.2M. Memo 2: Phase 1 uses 35% of budget. Memo 3: Phase 2 uses $480K. How much remains for Phase 3?

$300K (Correct answer)
$240K
$348K
$420K

Correct answer: $300K

Phase 1 = $420K; Phase 2 = $480K; remaining = $1,200K − $420K − $480K = $300K.

Question 28: What is the value of 3x − 2y? (1) x = 5. (2) y = 4.

Neither statement is sufficient.
Statement (2) alone is sufficient.
Both statements together are sufficient, but neither alone. (Correct answer)
Statement (1) alone is sufficient.

Correct answer: Both statements together are sufficient, but neither alone.

With x=5 and y=4: 3(5)−2(4) = 15−8 = 7; both statements together are needed.

Question 29: A table of 20 job applicants is filtered to show only those with GPA ≥ 3.5, returning 8 applicants. Then filtered further for 5+ years experience, returning 3. What percentage of all applicants meet both criteria?

15% (Correct answer)
40%
25%
37.5%

Correct answer: 15%

3 out of 20 applicants = 15% meet both criteria.

Question 30: Argument: Since experienced employees make fewer errors, the company should only hire candidates with 5+ years of experience. Which of the following most weakens this argument?

Some inexperienced candidates have exceptional skills.
All three above weaken the argument. (Correct answer)
Experience does not guarantee fewer errors in all roles.
Experienced candidates demand higher salaries.

Correct answer: All three above weaken the argument.

All three points challenge the argument: the correlation may not hold universally, cost may outweigh benefit, and experience is not the only relevant factor.

Question 31: A company has how many employees? (1) The ratio of managers to non-managers is 1:9. (2) There are 30 managers.

Statement (1) alone is sufficient.
Both statements together are sufficient, but neither alone. (Correct answer)
Each statement alone is sufficient.
Statement (2) alone is sufficient.

Correct answer: Both statements together are sufficient, but neither alone.

Statement (1) gives ratio; Statement (2) gives the number of managers; together: 30 managers + 270 non-managers = 300 total.

Question 32: A table of 10 investments shows annual returns from −5% to +18%. If sorted descending by return, how many investments must be examined before finding the first negative return?

It depends on the data. (Correct answer)
At most 9
Exactly 1
At least 1

Correct answer: It depends on the data.

Without knowing how many investments have positive returns, we cannot determine exactly where the first negative return appears in a descending sort.

Question 33: Passage: 'The concept of gig economy work has been celebrated for offering workers flexibility and autonomy. Yet many gig workers report financial instability, lack of benefits, and difficulty accessing credit or housing due to irregular income. This tension between flexibility and security defines much of the contemporary labor discourse.' The author's tone toward gig economy work can best be described as:

Indifferent to the debate surrounding gig work
Harshly critical of the exploitation it enables
Balanced and analytical, presenting both benefits and drawbacks (Correct answer)
Enthusiastically supportive of its benefits for workers

Correct answer: Balanced and analytical, presenting both benefits and drawbacks

The author presents both positive aspects (flexibility, autonomy) and negative aspects (instability, lack of benefits) without advocating for either side, reflecting a balanced analytical tone.

Question 34: A histogram shows employee tenure: 0–2 yrs = 30%, 2–5 yrs = 25%, 5–10 yrs = 35%, 10+ yrs = 10%. A company has 400 employees. How many have been there 5 years or more?

140
200
160
180 (Correct answer)

Correct answer: 180

(35% + 10%) × 400 = 45% × 400 = 180 employees.

Question 35: A financial table shows negative values in red and positive in black. After sorting ascending by Net Income, the first several rows appear in red. What does this indicate?

Those rows represent net losses (negative net income). (Correct answer)
Those rows have the highest costs.
Those rows have the highest net income.
The sort is applied incorrectly.

Correct answer: Those rows represent net losses (negative net income).

Ascending sort places the most negative (lowest) values first; red indicates negative net income, meaning those are net losses.

Question 36: A line graph shows two products' sales over 5 years. They intersect at Year 3. What does the intersection point represent?

Both products had equal sales in Year 3. (Correct answer)
Product B was discontinued in Year 3.
Year 3 was the peak sales year.
Product A overtakes Product B in sales.

Correct answer: Both products had equal sales in Year 3.

An intersection on a line graph means both series had the same value at that point in time.

Question 37: Which of the following best completes the argument? Dexter Solutions is one of the most successful Information Technology (IT) consulting companies around the world. It primarily deals in cloud computing domain. Alex is an IT consultant who specializes in IT infrastructure services. Thus, Alex surely cannot be a consultant at Dexter Solutions because __________.

Dexter Solutions does no business in the IT infrastructure services domain.
the global market size of the IT infrastructure services consulting business is small.
Alex has no skills in cloud computing.
an IT consultant who specializes in IT infrastructure services cannot qualify to be a cloud computing expert.
there is no overlap between Alex's skill-set and the domains that Dexter Solutions does business in. (Correct answer)

Correct answer: there is no overlap between Alex's skill-set and the domains that Dexter Solutions does business in.

Argument construction Let us understand the argument. The argument is simple to follow. An IT company primarily deals in the cloud computing business. There is an individual IT consultant who specializes in IT infrastructure services. The conclusion made is that the individual IT consultant cannot be a consultant at the referred IT company. We have to find out the missing logic that leads to such a conclusion. Thus, though this seems to be a 'complete the argument' question, it is actually a 'find the assumption' question. Conclusion: Alex surely cannot be a consultant at Dexter Solutions. Predict an Assumption The IT company deals primarily in cloud computing. It does not imply that it cannot deal in other businesses such as IT infrastructure services. It may do so. Similarly, the IT consultant Alex specializes in IT infrastructure services, but this does not imply that he cannot deal in other businesses such as cloud computing. He may do so. Since the conclusion states that Alex surely cannot be a consultant at Dexter Solutions, it implies that no skill of Alex and no business domain of Dexter are common. Predictive Assumption: No employable skill of Alex and no business domain of Dexter are common.

Question 38: A hospital reduced readmission rates by 18% after implementing a new discharge protocol. Which of the following, if true, most supports that the protocol caused the reduction?

The protocol was developed by leading medical researchers.
The hospital also upgraded its emergency department in the same period.
Readmission rates at control hospitals with the same patient demographics remained unchanged. (Correct answer)
Patients reported higher satisfaction with the new protocol.

Correct answer: Readmission rates at control hospitals with the same patient demographics remained unchanged.

A control group showing no change while the experimental group improved provides strong evidence of causation.

Question 39: A scatter plot shows a strong positive correlation between advertising spend and sales. A point at ($50K spend, $400K sales) lies well above the trend line. What does this most likely indicate?

The trend line is incorrect.
Sales are unusually high relative to the spend. (Correct answer)
The data point should be removed.
Advertising spend is too high at that level.

Correct answer: Sales are unusually high relative to the spend.

A point above the trend line means actual sales exceeded what the correlation predicts for that level of spend.

Question 40: A two-line chart shows projected vs. actual costs over 6 months. The actual line is consistently below the projected line. What does this indicate?

Revenue is exceeding forecasts.
Costs are being managed better than expected. (Correct answer)
The project is over budget.
The projection model is accurate.

Correct answer: Costs are being managed better than expected.

Actual costs consistently below projections mean spending is better controlled than the budget assumed.

Executive Assessment (EA)

The Executive Assessment (EA) is a 90-minute admissions test developed by GMAC for Executive MBA programs, measuring higher-order reasoning skills across Integrated Reasoning, Verbal Reasoning, and Quantitative Reasoning sections.

Questions

68 min

Time Limit

70%

To Pass

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Sources & references

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