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Preparation for P&G Problem Solving Test

Explanation of correct answers for practice questions


1- The correct answer is C
Rationale: The increase in the Dollar amount of income from year 1 to year 2 = Year 2 Income Year 1 Income
Industry
Agriculture
Communication
Construction
Finance and Real Estate
Manufacturing
Transportation

Year 1
22
14
36
78
213
27

Year 2
26
17
43
90
218
30

Year 2 Year 1
4
3
7
12
5
3

As you can see from the table above, Finance and Real Estate (the C option) has the largest increase in Dollar amount from year 1 to
year 2.
2- The correct answer is E
Rationale: The increase in the Dollar amount of income from year 1 to year 5 = Year 5 Income Year 1 Income
Industry
Agriculture
Communication
Construction
Finance and Real Estate
Manufacturing
Transportation

Year 1
22
14
36
78
213
27

Year 5
51
21
57
118
287
40

Year 5 Year 1
29
7
21
40
74
13

As you can see from the table above, Transportation (the E option) has the smallest increase in Dollar amount from year 1 to year 5 of
those industries listed among the possible answers (Communication has the overall smallest increase but is not listed as an option).
3- The correct answer is A
Rationale: The percentage of increase from year 3 to year 4 = Year 4 Year 3 x 100
Year 3
Industry
Year 3
Year 4
Agriculture
Communication
Construction
Finance and Real Estate
Manufacturing
Transportation

26
18
47
100
226
33

30
20
52
108
253
36

Year 4 Year 3 x 100


Year 3
15.4%
11.1%
10.6%
8.0%
11.9%
9.1%

As you can see from the table above, Agriculture (the A option) has the largest percentage increase.
4- The correct answer is D
Rationale: The percentage of change from year 1 to year 4 = Year 4 Year 1 x 100
Year 1
Industry
Year 1
Year 4
Agriculture
Communication
Construction
Finance and Real Estate
Manufacturing
Transportation

22
14
36
78
213
27

30
20
52
108
253
36

Year 4 Year 1 x 100


Year 1
36.3%
42.9%
44.4%
38.5%
18.8%
33.3%

As you can see from the table above, Manufacturing (the D option) has the smallest percentage change.

5- The correct answer is A


Rationale: Compare the difference between Year 2 Year 1, Year 3 Year 2, Year 4 Year 3 and Year 5 Year 4 across all industries
and select the least consistent amount of difference
Industry
Agriculture
Communication
Construction
Finance and Real Estate
Manufacturing
Transportation

Year 2 - Year 1
4
3
7
12
5
3

Year 3 Year 2
0
1
4
10
8
3

Year 4 Year 3
4
2
5
8
27
3

Year 5 Year 4
21
1
5
10
34
4

As you can see from the table above, Agriculture (the A option) has the least consistent trend, as it is the only industry to have moved
from growth to flat progression before moving back to growth. Also, the amount of increase in the last year was much higher and
inconsistent in comparison with the earlier periods where the amount of growth was in the range of 4.

6- The correct answer is B


Rationale: Look at the year on year change for the Transportation industry and apply the same trend on the value of year 5 to come to
the expected amount for year 6.
Industry
Transportation

Year 2 - Year 1
3

Year 3 Year 2
3

Year 4 Year 3
3

Year 5 Year 4
4

As you can see from the table above, the year on year change is in the range of 3 to 4. If we apply the same amount of change on year
5, the amount for year 6 should be in the range of 43 to 44. Therefore B is the right estimate.

7- The correct answer is C


Rationale: For each 2 given industries, divide the yearly income of the first one by the yearly income of the second one. Choose the
combination where the result of this division is most consistently in the range of 0.5 throughout the 5 years
Industry
Agriculture/Finance
Communication/Agriculture
Construction/Finance
Finance/Manufacturing
Transportation/Communication

Year 1
Year 1
0.28
0.64
0.46
0.37
1.93

Year 2
Year 2
0.29
0.65
0.48
0.42
1.76

Year 3
Year 3
0.26
0.69
0.47
0.44
1.83

Year 4
Year 4
0.27
0.67
0.48
0.43
1.80

Year 5
Year 5
0.43
0.41
0.48
0.41
1.90

As you can see from the table above, Construction/Finance (the C option) is the closest to 0.5 on a consistent basis.

8- The correct answer is D


Rationale: Calculate the year on year growth rate for all industries and count how many times it reached or exceeded 10%, regardless
of the industry name. To calculate the growth year in a certain year, apply the equation below:
Growth rate in Yx = Yx Yx-1 x 100
Yx-1
Industry
Agriculture
Communication
Construction
Finance
Manufacturing
Transportation

Growth in Y2
18.2%
21.4%
19.4%
15.4%
2.3%
11.1%

Growth inY3
0%
5.8%
9.3%
11.1%
3.7%
10.0%

Growth in Y4
15.4%
11.1%
10.6%
8.0%
11.9%
9.1%

Growth in Y5
70.0%
5.0%
9.6%
9.3%
13.4%
11.1%

As you can see from the table above, the growth rate reached or exceeded 10% in 14 cases (count all gray shaded cells) and therefore
option D is the correct answer.

9- The correct answer is E


Rationale: Calculate the year on year growth rate for all industries and look for the one showing the least fluctuations.
Industry
Agriculture
Communication
Construction
Finance
Manufacturing
Transportation

Growth in Y2
18.2%
21.4%
19.4%
15.4%
2.3%
11.1%

Growth inY3
0%
5.8%
9.3%
11.1%
3.7%
10.0%

Growth in Y4
15.4%
11.1%
10.6%
8.0%
11.9%
9.1%

Growth in Y5
70.0%
5.0%
9.6%
9.3%
13.4%
11.1%

As you can see from the table above, Transportation (option E) is the correct answer as it has the lowest fluctuations.

10- The correct answer is E


Rationale: For each given combination, calculate the growth rate from year 1 to year 3 and select the option where the 3 industries
achieve a growth rate of 30%-33%
Combination
Agriculture
Communication
Transportation
Agriculture
Communication
Construction
Communication
Construction
Transportation
Construction
Finance
Transportation
Communication
Construction
Finance

Y3-Y1 X 100
Y1
18.2%
28.6%
22.2%
18.2%
28.6%
30.6%
28.6%
30.6%
22.2%
30.6%
28.2%
22.2%
28.6%
30.6%
28.2%

As you can see from the table above, the shaded combination (the E option) is the correct answer.

11- The correct answer is D


Rationale: Calculate the growth rate from Y1 to Y3 for all industries and count how many industries had a growth rate of at least 20%
Industry
Agriculture
Communication
Construction
Finance
Manufacturing
Transportation

Y3-Y1 X 100
Y1
18.2%
28.6%
30.6%
28.2%
6.1%
22.2%

As you can see from the table above, the growth rate was at least 20% in 4 cases (count all gray shaded cells) and therefore option D
is the correct answer.

12- The correct answer is C


Rationale: Calculate the percentage increase for the given period for each industry and pick the highest value.
Industry
Agriculture
Communication
Construction
Finance
Manufacturing
As you can see from the table above, Construction (the C option) is the correct answer.

Yx-Yx-1 x 100
Yx-1
15.4%
5.9%
19.4%
9.3%
11.9%

13- The correct answer is B


Rationale: In lines 1 to 3, the author states: A personnel department should first of all think of itself as a research group. Further, in
lines 43 to 45 he says, These are some important questions that a review function can help answer. Both statements support the B
option, offering the description of the personnel department as a research and review function.

14- The correct answer is E


Rationale: The paragraph from lines 27 to 32 emphasizes the importance of having guidelines to help people to carry out their jobs
while allowing line managers enough room to have day-to-day interaction with their people. Therefore, they in line 31 refers to the line
managers.

15- The correct answer is C


Rationale: The questions in the last paragraph represent the key measures that a personnel department needs to cover in the
performance review or function survey, recommended by the author in lines 34 to 35. Since both performance reviews and function
surveys are methods to evaluate the efficiency of the personnel department, option C is the correct answer.

16- The correct answer is E


Rationale: The author stresses the importance of maintaining the day-to-day interaction between line managers and their people, but
does not tackle the reasons why such interaction should be essential. Read through the paragraph from lines 21 to 32.

17- The correct answer is A


Rationale: In lines 21 to 27, the author mentions that the personnel department should develop guidelines in order to help people to
carry out their job; he does not, however, explain the details of how these guidelines can add value. The author provides the rationale
behind his argument in line 27, therefore, option A is the correct answer.

18- The correct answer is D


Rationale: The author does not outline the importance of the interaction between personnel and the employees in various line
departments which can help the personnel department to maintain better contact with the organization and employees. He discusses
the interaction between line managers and their people, but not the interaction between the personnel department and the people of the
organization. Option D is therefore the correct answer.

19- The correct answer is B


Rationale: In lines 1 to 11, the author gives personnel people an overall orientation on how to better perform their job and to come up
with new approaches to managing their tasks. This is shown in line 9 as he states his point of view: It is thinking about your job and
exploring new ways of carrying it out. Therefore, option B is the correct answer.

20- The correct answer is C


Rationale: - Original Price = 10 USD
- 10% Sale Price = 10 USD * 90% = 9 USD
- Assume the cost = X
Since the 10% sale price is 20% greater than the cost, then X + 20%X = 9, then 1.20 X = 9, then X = 9/1.2 = 7.5

21- The correct answer is D


Rationale: - The paper has been first reduced by 40% to be at 60% of its original size.
- The 60% has been reduced by 20%
- The final size of the paper will then be equal to 60% - 20%*60% = 60% - 12% = 48%

22- The correct answer is B


Rationale: - Total Department = 60% Females + 40% Males
- Project Team = 15% of the department Females + 25% of the department Males
Therefore: - The % of the females on the project as a % of total females = 60% * 15% = 9%
- The % of the males on the project as a % of total males = 25% * 40% = 10%
- The % of the department working on the project = 9% + 10% = 19%

23- The correct answer is B


Rationale: Assume: Carburetor = X, Tune up = Y, Brake Pads = Z, Alignment = A, Wheel Balancing = B
Given Facts = X = 2Y, X = 3Z, 2Y = 3Z, Z = 2/3Y
Y = 3A, Y = 3B
X + Y + Z + A + B = 195
Therefore, we can say that: 2Y + Y + 2/3Y + 1/3Y + 1/3Y = 195, then 3Y + 4/3Y = 195, then Y = 45

24- The correct answer is B


Rationale: X = 5/8 of the total liquid, then X = 62.5% of the total liquid
Since we only have 25 gallons of X, then 62.5% of the liquid = 25 gallons, then the total liquid = 25/62.5% = 40 gallons

25- The correct answer is B


Rationale: - Original Price = 0.75 USD, Original Cost = 0.60 USD, Original Volume = 1,200,000 Units
- Therefore, original profit = (0.75 0.60) * 1,200,000 = 180,000 USD
- New Cost = 0.60 *1.05 = 0.63 USD, Selling Price = 0.75 USD, New Volume = 2,000,000 Units
- New Profit = (0.75 0.63) * 2,000,000 = 240,000 USD
Difference between the old and new profits = 240,000 180,000 = 60,000 USD

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