In these types of questions, we may encounter some people (say three), each belonging to a different

category:
1.

Truth-Tellers: A person whose each and every statement is true.

2.

Liars: A person whose each and every statement is false.

3.

Alternators: If first statement of a person is true, then next is false or vice versa.

Example Question
Such types of questions are becoming quite popular in various MBA entrance exams and
also in Campus Recruitment Tests. In these types of questions, we may encounter some
people (usually three), each belonging to a different race / type / tribe, namely
(i) Truth-tellers
(ii) Liars
(iii) Alternators
Truth teller is the one whose each and every statement is always true.
Liar is the person whose each and every statement is always false.
Alternators alternate between the truth and lies, in any order. That is, If his first statement
is true, then his second statement is definitely false or vice-versa.
Method:
While tackling problems which consist of a person belonging to a different type out of the
three types, you should look for two contradicting statements and then assume one of them
to be true and continue making the arrangement.
Alternately, one person can be assumed to be the truth-teller and an arrangement should be
made by verifying the status of each statement. If the arrangement gives rise to a
contradiction or is in disagreement with the instructions, it will mean that our initial
assumption regarding the truth-teller is wrong. Hence, we will then assume the second
person to be the truth-teller, and so on.

Example 1: Find who among A, B & C is truth-teller, alternator and liar ?

A says - I am the truth teller.
B says - A is truth teller.
C says - I am alternator.

Solution: It is obvious that B and C cannot be truth teller because if B is a truth teller, then
he would never say that A is truth-teller and similarly C will never say he is alternator if he is
truth teller. Hence A is truth teller.
Now, Since B said truth about A, hence B cannot be a liar. Hence B is alternator.
So C is liar.

Example 2: Find who among A, B & C is truth-teller, alternator and liar?

A says : I am the truth teller. B is a liar.
B says : I am the alternator. C is the liar.
C says : I am the liar. A is the truth-teller.
Solution: It is very clear that "I am a liar" cannot be the statement of a truth-teller or a liar.
Hence C is the alternator, i.e. one of his statement is true and other is false. Also his first
statement "I am a liar" cannot be true because he is alternator. Hence the first statement of
C is false and second is true.
Hence A is truth-teller and B must be the liar.
Now, we need to check the consistency in the statements of A and B to support our
assumption.
A : I am the truth teller (TRUE)
: B is a liar. (TRUE)
B : I am the alternator. (FALSE)
: C is the liar. (FALSE)
C : I am the liar. (FALSE)
: A is the truth-teller. (TRUE)
Since our assumption is consistent with all the statements.
Hence, we get A is truth-teller

B is liar.
C is alternator.