McKinsey

Problem Solving Test

Practice Test Overview and Instructions

This practice test is designed to offer a sample of the actual McKinsey Problem Solving Test used
for candidate selection. The test evaluates your ability to solve business problems using deductive,
inductive, and quantitative reasoning. It consists of 26 questions, mirroring the format of the real
test, where you will have 60 minutes to answer as many questions as possible.

Each section of the test presents three scenarios based on real McKinsey client cases. Information
relevant to each scenario is presented in various formats, such as text, tables, and exhibits, often
highlighted in shaded areas. The questions require you to select the most appropriate answer based
solely on the provided information. You should choose one and only one answer for each
question.

During this practice test, electronic devices like calculators or computers should not be used for
calculations. In the actual test, such devices are also not allowed. However, you can use any blank
space in the test booklet as scratch paper for calculations and note-taking. These booklets will be
destroyed after the test, and they will not affect your final score, which is determined solely by the
number of correctly answered questions.

To score your performance, refer to the answer key at the end of this booklet. Your final score is
determined by the number of correct answers you provide.

Innovation Capital

The Group of Eight (G8) consists of political representatives from eight of the world's largest
eleven economies, namely the United States, United Kingdom, Canada, Germany, France, Italy,
Japan, and Russia. Periodically, the G8 convenes to discuss important issues affecting its member
states and collaborates on measures to address these concerns.

One pressing topic for the upcoming meeting of G8 Finance Ministers is the slow economic
growth experienced by these countries in recent years. To prepare for this meeting, a team from
McKinsey, in collaboration with external thought leaders and academics, is in the process of
crafting a report on the significance of Innovation as a driver of economic growth. The team aims
to introduce the concept of "Innovation Capital" to G8 representatives, which refers to the

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collective value of all innovation-related assets that contribute to enhancing productivity within an
economy.

The team further delineates three categories of Innovation Capital:

1. Physical Capital: This category includes investments in information and communication

equipment.
2. Knowledge Capital: It encompasses investments that foster intellectual property and
enhance the brand value of companies or organizations.
3. Human Capital: This category comprises investments that develop the skills and capabilities
of individuals or groups within companies or organizations.

Exhibit 1 illustrates the primary components of Innovation Capital and their total value across 16
countries, including the G8 member nations, which the team has been studying.

What is the primary purpose of the team's preparations for the G8 meeting?

1. The team aims to introduce a new economic metric called "Innovation Capital" that they
have discovered.
2. The team's objective is to elaborate on how innovation can serve as a catalyst for economic
growth.
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 3. The team wishes to clarify how innovation can account for a significant portion of an
economy's overall size.
4. The team's intention is to persuade the group to consider increasing their future
investments in Innovation Capital.

Which of the following analytical approaches would be the LEAST suitable for gaining insight into
the magnitude of investments in Innovation Capital within the countries under study by the team?

1. Evaluating the appropriateness of analysing organizations' spending on employee training

programs to comprehend investments in Innovation Capital within the studied countries.
2. Assessing the relevance of analysing organizations' spending on initiatives aimed at
promoting their mission and goals to understand investments in Innovation Capital.
3. Considering the suitability of analysing organizations' expenditures on networking and
socialization events to gauge investments in Innovation Capital.
4. Examining the relevance of analysing organizations' spending on the management of their
data systems and information technology to gain insights into investments in Innovation
Capital.

What can be inferred or determined from the data presented in Exhibit 1 concerning the countries
under examination?

1. Can it be inferred from the data in Exhibit 1 that 45% of all Human Capital is allocated to
Organizational Development within the studied countries?
2. Does Exhibit 1 suggest that 51% of all Innovation Capital represents Knowledge Capital?
3. Based on the information in Exhibit 1, is it accurate to conclude that investments in
Computerized Information account for over 10% of Innovation Capital?
4. Does the data in Exhibit 1 imply that over a quarter of Innovation Capital is directed
towards Scientific Research & Development within the countries under study?

If the overall Innovation Capital shown in Exhibit 1 were to increase by 5% annually in the coming
years, what would be the smallest annual growth rate necessary for Human Capital to constitute
over 50% of the total Innovation Capital within a span of 10 years?

1. 10 %
2. 15 %
3. 20 %
4. 25 %

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The team is analysing recent changes in the growth of the business sector across several European
countries. Specifically, they are looking at how the total value of goods and services produced by
these countries' business sectors has changed over time.

The growth in the value of goods and services can be attributed to two main factors:

• Hours: Changes in the total number of hours worked can influence the overall production
of goods and services.
• Productivity: Even when the same number of hours are worked, differences in workforce
productivity can result in varying levels of goods and services being produced.

Exhibit 2 provides an overview of the average contributions of these two factors to the growth of
the business sector in ten European countries over the past 12 years. The chart displays the average
annual growth rate of the business sector at the top of each bar. Within each bar, the light grey
section represents the proportion of this growth that can be attributed to changes in productivity,
while the dark grey section represents the proportion driven by changes in the number of hours
worked

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Which of the following statements, if accurate, would MOST effectively highlight the significance
of the data presented in Exhibit 2 for the team's objectives?

1. The majority of the countries featured in Exhibit 2 have witnessed a decline in economic
growth over the past two years.
2. The business sector plays a dominant role in contributing to Innovation Capital in the
majority of the countries assessed.
3. The primary factor influencing the growth in Hours is the expansion of the working
population in most cases.
4. Growth in Productivity is primarily linked to advancements and developments in the realm
of Innovation.

Which of the following statements can be confirmed as accurate based on the data presented in
Exhibit 2?

1. The total number of hours worked increased by 24% across all ten countries during the
past 12 years.
2. Slovenia experienced the most substantial growth in Productivity over the past 12 years.
3. Spain exhibited the smallest increase in Productivity over the last 12 years among the
countries analysed.
4. Germany had the smallest growth in the number of hours worked over the past 12 years
when compared to the other countries.

What is the rounded difference, to the nearest tenth of a percentage point, in the average annual
business sector growth attributable to productivity over the last 12 years between Germany and
Spain?

1. 0.1 percentage points

2. 0.5 percentage points
3. 0.9 percentage points
4. 1.3 percentage points

Which of the following, if accurate, has the LEAST explanatory power for the data pertaining to
Slovenia and the Czech Republic as presented in Exhibit 2?

1. The population in these countries has seen a continuous rise in average age over the past
two decades.
2. These nations were transitioning from Communist economies with relatively limited
infrastructure and productivity levels before the period covered in Exhibit 2.
3. Net migration into these countries has experienced a negative trend over the last 12 years.
4. Alterations in labour regulations within these countries have provided employers with
increased flexibility in determining the working hours for their workforce.

As part of their preparations for the upcoming G8 meeting, the team recognizes the value of
incorporating specific instances of recent significant innovations to effectively convey the
significance of Innovation Capital. One team member proposes the inclusion of Apple's iPod

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music player as an illustrative example, and the team unanimously endorses this idea. They are
convinced that the evolution of the iPod not only demonstrates all three forms of Innovation
Capital but also exemplifies how initial investments in Innovation Capital can yield long-term
advantages that accumulate over time.

Which of the following statements provides the weakest representation of the Innovation Capital
that underlies the creation of Apple's iPod?

1. The development of fresh software and technology was essential to enable the distribution
of music through online platforms.
2. There were negotiations to establish new pricing models with the music industry, aimed at
promoting online music purchases.
3. Innovative design concepts were conceived and implemented to give the product an
attractive and user-friendly appearance.
4. A novel approach for collaborating with the music industry was created to facilitate the
swift distribution of new music to iPod users.

Which of the following analyses would most effectively exemplify the team's perspective on
Apple's iPod, as per their beliefs?

1. An examination of the market share Apple has secured for its products following the
introduction of the iPod.
2. An estimation of the financial commitment made by Apple for the development of the
iPod.
3. An approximation of the profit margins experienced by the music industry after the iPod's
debut.
4. An evaluation of the responses elicited from technology experts in response to the iPod
and subsequent Apple products.

Marcadia

Marcadia is an online retailer that has been operating for five years and experienced significant sales
growth due to a surge in new customer sign-ups. However, recently, the company has observed a
plateau in its customer numbers, resulting in slower sales and profit growth.

The Managing Director of Marcadia has enlisted the help of McKinsey to gain a deeper
understanding of customer purchasing behavior. She believes that a better grasp of how customers
make purchases can lead to more precise and effective marketing strategies. She expresses her
conviction, stating, "I am confident that our most valuable customers exhibit specific purchasing
behaviors that we can identify. By encouraging more customers to adopt these behaviors, we can
enhance their value to our business, potentially injecting new growth opportunities."

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Exhibit 3 provides data collected by the team regarding a sample of 500,000 Marcadia customers
who registered in the past calendar year. These customers are categorized into quintiles based on
their one-year customer value, ranging from lowest to highest. "One year customer value"
represents the profit generated by Marcadia from a customer's purchases during their first year
since signing up. The exhibit also presents data on the purchasing behavior of customers in each
quintile during their initial 90 days after joining, including the average number of purchase
transactions and the total revenue generated for Marcadia through those transactions.

Which of the following statements MOST accurately characterizes the reason for the Managing
Director of Marcadia seeking McKinsey's assistance?

1. She envisions that Marcadia can enhance its ability to pinpoint customers who discontinue
their purchases.
2. She envisions that Marcadia can improve its capability to identify strategies for enticing
customers to increase their spending.
3. She envisions that by concentrating on the most valuable customers, Marcadia can
stimulate renewed growth in their business.
4. She envisions that Marcadia can refine its capacity to forecast the purchasing behaviour of
its customers more accurately.

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Which of the following statements cannot be inferred from the data provided in Exhibit 3
regarding the examined sample of customers?

1. The level of customer purchasing during their initial 90 days is reflective of their value to
Marcadia within their first year of engagement.
2. Quintile 1 comprises customers who generate the least profit margin for Marcadia.
3. On average, customers engage in approximately 2 to 3 transactions during the first 90 days
following their registration.
4. The mean one-year customer value is approximately $7.90.

What is the accurate ordering of the five quintiles in Exhibit 3 based on the average transaction
revenue, starting from the lowest to the highest?

1. 1,2,4,3,5
2. 1,2,3,4,5
3. 1,3,2,4,5
4. 1,3,2,5,4

If Marcadia had managed to boost the purchasing activity of new customers in Exhibit 3 to the
extent that the one-year value of customers in Quintiles 1 through 4 increased to the level of the
quintile immediately above them, how much greater would Marcadia's total one-year customer
value have been?

1. $250,000
2. $650,000
3. $2.5 million
4. $6.5 million

The team has devised an email marketing pilot targeting 100,000 new customers who have made at
least one purchase since joining. These new customers are divided into two equal groups: a 'pilot'
group and a 'control' group. The pilot group receives a specially tailored email aimed at
encouraging further purchases, while the control group does not receive any such email. All emails
to the pilot group are dispatched simultaneously, with varying designs based on customer
demographics and their past purchasing patterns.

Following the pilot initiative, exhibit 4 is created. This exhibit illustrates the 'lift' in the purchasing
behaviour of the pilot group compared to the control group after the emails were sent to the pilot
group. Horizontally, the data is categorized based on how long ago the customer made their initial
purchase from Marcadia, measured from the time the emails were sent to the pilot group.
Vertically, the information is organized according to the type of product that was purchased during
the customer's first transaction with Marcadia. In each designated segment, the upper left part
displays the increase in the number of transactions, while the lower right portion shows the rise in

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the number of customers who made transactions. All the data presented in Exhibit 4 is expressed
in terms of percentage points.

What can be ascertained when examining the data in Exhibit 4 for customers who made their first
purchase in the Electronics category, in terms of the comparison between the pilot group and the
control group?

1. What is the variance in the average number of transactions per customer between the pilot
group and the control group?
2. How does the number of customers making transactions differ between the pilot group
and the control group?
3. Among the two-week time segments, which one exhibited the most significant difference in
the number of transactions?
4. How is the percentage of the total lift in the number of transactions distributed across the
various two-week time segments?

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If 10% of the customers in the control group engaged in transactions during the pilot, how many
customers in the pilot group also made transactions during the same period?

1. 5,085
2. 5,850
3. 10,170
4. 11,700

Which of the following statements cannot be inferred or deduced from the data provided in
Exhibit 4?

1. It cannot be concluded from the data in Exhibit 4 that the pilot had no overall impact on
the likelihood of customers who made their first purchase in Clothing/Apparel to engage
in further transactions.
2. It cannot be deduced from the data in Exhibit 4 that the pilot had a positive impact on the
number of transactions per customer for those who made their first transaction 4-6 weeks
prior to the emails being sent.
3. It cannot be conclusively determined from the data in Exhibit 4 that the pilot had the
greatest impact among customers whose first transaction was in Electronics.
4. It cannot be firmly established from the data in Exhibit 4 that among customers whose first
transaction was in 'Other', the pilot had the greatest impact on those whose first transaction
was more recent.

Which of the following pieces of data from the pilot period would provide the team with the least
valuable insights when it comes to further examining the impact of the pilot on Marcadia's
business?

1. Among the following data points from the pilot period, which would offer the team the
least utility when delving into the pilot's influence on Marcadia's business?
2. Which of the following data elements from the pilot period would provide the team with
the least valuable insights when examining the impact of the pilot on Marcadia's business?
3. Among the provided data during the pilot period, which would be of the least assistance to
the team in their investigation of the pilot's impact on Marcadia's business?
4. Which data refinement from the pilot period would contribute the least to the team's
analysis of the pilot's effects on Marcadia's business?

During the meeting with the Managing Director of Marcadia to discuss the pilot's
outcomes, one team member points out that it's important to remember that all new
customers might have received emails from Marcadia that were unrelated to the pilot.

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What is the most probable rationale behind the team member's statement to the Managing
Director?

1. The team member may have made this statement to address any potential concerns from
the Managing Director about the treatment of customers in the control group.
2. The team member's statement could be a reflection of their apprehensions regarding the
execution of the pilot by Marcadia's staff.
3. The team member might be highlighting the possibility that sending too many emails to
customers from the same company could lead to a decreased likelihood of those emails
being opened and read.
4. The team member may be considering the scenario where customers discover that they
were not included in the pilot, which could potentially result in dissatisfaction among those
customers.

Way Forward Greater London Area (WFGLA)

Way Forward (WF) is a nonprofit organization consisting of over 50 local offices across the United
Kingdom. One of these local offices, Way Forward Greater London (WFGLA), is situated in the
Greater London Area, encompassing the metropolitan area around London. Typically, these local
offices collaborate with private and social sector organizations to combine efforts in fundraising
initiatives. These campaigns predominantly address urgent community issues, often revolving
around education, income, or health. WF's approach involves first educating the public about these
campaigns and subsequently seeking donations.

Presently, the United Kingdom is experiencing an economic downturn, posing a challenge for
WFGLA as donations are declining at a time when community needs are at their peak. The
President of WFGLA has engaged McKinsey for assistance and states, "We require your support in
enhancing the effectiveness of our campaigns, which we measure as the amount of money donated
per pound invested in the campaign. Our primary focus is to boost donations during these
challenging times."

Campaigns are typically coordinated by a collective group known as a "campaign cabinet." This
assembly comprises both WFGLA staff and volunteers from the general public, with the actual
campaign activities executed by volunteers.

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Considering the objectives outlined by the President of WFGLA, which of the following questions
would be the LEAST pertinent for the team to address?

1. Among the following inquiries, which one would be of the LEAST relevance for the team
to address, given the President's objectives for WFGLA?
2. Which of the following questions would be of the LEAST importance for the team to
answer in light of the President's goals for WFGLA?
3. Among these questions, which one would be the LEAST pertinent for the team to explore,
given the President's aims for WFGLA?
4. Which of the following questions would be the LEAST crucial for the team to tackle in line
with the President's objectives for WFGLA

Which of the following pieces of information would provide the LEAST assistance in gaining a
more comprehensive understanding of the present situation at WFGLA?

1. Total amount of donations, in British pounds, collected by other WF offices across the
U.K.
2. Comparison of donations made to WFGLA by one-time donors versus regular donors
over the past 5 years
3. Market research on the public awareness generated by WFGLA campaigns over the past 5
years
4. Comparison of campaign effectiveness with other local WF offices

The team gathers more data on WFGLA and on other WF offices. Exhibit 5 shows the total
donations and total campaign costs in million British pounds (£) for various WF offices last year.

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What is the appropriate ranking order for Regions A to E in Exhibit 5 in terms of their campaign
effectiveness, starting with the highest and ending with the lowest?

1. C,E,D,B,A
2. C,A,D,E,B
3. C,E,D,A,B
4. A,B,D,E,C

If WFGLA were to achieve the highest campaign effectiveness among all the regions in Exhibit 5,
by what percentage would their current campaign effectiveness need to increase?

1. 196%
2. 235%
3. 296%
4. 335%

The team is considering a potential opportunity to segment potential donors based on their
occupation, with the objective of adopting distinct fundraising strategies tailored to employees in
various job roles. The team has identified three worker segments:

• Blue Collar: Comprising employees primarily engaged in manual labour.

• White Collar: Consisting of employees predominantly involved in office-based work.
• Executive: Encompassing employees with higher education degrees, often occupying senior
managerial roles in businesses.

Exhibit 6 displays the number of employees, in thousands, within each segment in the Greater
London Area. These employees are further categorized based on the size of the companies they
work for and their existing level of engagement or "relationship intensity" with WFGLA. The
ultimate goal is to enhance the relationship intensity within each segment, thereby moving them
closer to the "frequent contact" category.

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Based on the information presented in Exhibit 6, which statement is the most likely to be accurate?

1. WFGLA has established contact with just over 50% of all employees in the Greater
London Area.
2. Smaller companies have received relatively limited attention from WFGLA in the past.
3. The majority of total donations appear to originate from employees who have frequent
contact with WFGLA.
4. The most significant potential for increasing donations lies in reaching out to employees at
large companies with whom WFGLA has not yet established contact.

The team investigates the donation potential within each segment based on the size of the
companies involved. Their findings indicate that a medium-sized Blue Collar company employee
who has frequent contact currently contributes twice as much as a medium-sized Blue Collar
company employee with limited contact. Furthermore, the team concludes that, through
appropriate targeting and strategies, all employees of medium-sized Blue-Collar companies could
raise their individual donations by £50 per year. This initiative encompasses employees who
currently have no interaction with WFGLA and are not making any donations at present.

Assuming WFGLA implements the focused approach, the projected total donation amount for
Blue Collar employees in medium-sized companies will be £6.13 million. What is the current yearly
donation made by a Blue-Collar employee with frequent contact at a medium-sized company?

1. £50
2. £100
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 3. £150
4. £200

Besides assessing donation potential, which of the following pieces of information would be the
LEAST valuable to take into account when determining the prioritization of the various employee
segments for WFGLA?

1. Consideration of the disposable income levels among different employee segments.

2. Evaluation of the required volunteer hours per segment to enhance employees' relationship
intensity to the next level.

3. Examination of the track record and effectiveness of past campaigns targeting comparable
employee segments.
4. Assessment of the supplementary budget requirements for WFGLA to elevate employees'
relationship intensity to the next level within each segment.

Answer Key
Innovation capital

1. Option B is the correct choice because the introductory paragraphs mention that the
team is preparing a report on the significance of innovation as a contributor to
economic growth. This statement aligns with the team's objective.
2. Option C is the most suitable answer. In the context of the three types of Innovation
Capital defined in the introductory paragraphs, Option C doesn't align with any of
these categories. Option A pertains to Human Capital, Option B relates to Knowledge
Capital by building an organization's brand, and Option D is connected to Knowledge
Capital through the development of intellectual property.
3. Option A is the correct answer. By examining Exhibit 1 and categorizing the items into
the three types of Innovation Capital, you can identify that the final three categories
represent Human Capital, with a total of $3.3 trillion. Among these, Organizational
Development accounts for $1.5 trillion, which is 45% of the $3.3 trillion total. The 2nd
to 5th categories represents Knowledge Capital, which can be calculated as 60% of the
total. Option B is incorrect because it doesn't align with the data. Option C is incorrect
as Computerized Information represents 8.7% of the total, and Option D is incorrect
as Scientific Research and Development represents 23.2% of the total.
4. Option B is the correct choice. At a growth rate of 5% per year over 10 years, the total
Innovation Capital would reach $22.5 trillion. However, if Human Capital grows at a
rate of 10% per year, it would only reach $8.6 trillion. At a growth rate of 15% per year,

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 Human Capital would grow to $13.4 trillion, which is more than half of the total
Innovation Capital.
5. Option D is the best answer. The team's original objective is to demonstrate how
Innovation Capital can drive economic growth. Exhibit 2 indicates that in most
countries, business sector growth is primarily driven by improvements in productivity.
Combining this observation with Option D establishes a direct link between
Innovation Capital and business sector growth, which in turn contributes to economic
growth.
6. Option B is the correct choice. Growth in productivity can be calculated by multiplying
the overall growth rate by the proportion attributed to productivity. Slovenia has the
highest overall growth rate and the second-highest proportion attributed to
productivity, making Option B the correct answer. Option A is incorrect because it
suggests that hour’s growth is 24% across all countries, which is not supported by the
data. Option C is incorrect as Italy has the least growth in productivity. Option D is
incorrect because Slovenia has the least growth in hours worked.
7. Option C is the correct answer. The growth figures for Germany and Spain can be
calculated by multiplying their total growth by the proportion attributed to productivity.
For Germany, this figure is 1.7% (1.4 multiplied by 121.6%). For Spain, this figure is
0.8% (3.8 multiplied by 20.1%). Therefore, the difference between the two is 1.7% -
0.8% = 0.9 percentage points.
8. Option D is the best choice. Option D states that changes in employment laws have led
to greater flexibility in setting working hours for employees, which is inconsistent with
the trend of declining working hours in these countries. Option A could explain the
declining hours due to an aging population. Option B could explain the relatively high
growth rates due to emerging from stagnant economies. Option C could account for
declining hours due to more people leaving these countries than entering.
9. Option B is the most appropriate answer. Among the options presented, Option B is
the least likely to represent any of the three types of Innovation Capital mentioned in
the introductory paragraphs. Pricing of products is not inherently related to new
technology or intellectual property. Option A could represent either Physical Capital or
Knowledge Capital. Option C could represent Knowledge Capital. Option D would
refer to new organizational development, representing Human Capital.
10. Option A is the correct choice. The team's belief is that investment in Innovation
Capital can lead to follow-on advantages for the investor, in this case, Apple. Option A
is the only statement that might illustrate follow-on advantages for Apple by
establishing improvements in market share for subsequent products. Option B only
mentions investment without necessarily indicating an advantage for Apple. Option C
looks at the entire music industry, which may not specifically show an advantage for
Apple. Option D refers to the opinions of technology experts, which may not directly
reflect an advantage for Apple in the marketplace.

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Marcadia

1. Option B is the correct choice. The Managing Director aims to find ways to encourage
customers to adopt purchasing behaviors that make them more valuable to Marcadia.
Encouraging customers to spend more aligns with this objective. Option A refers to
customers who stop purchasing, which is not mentioned by the Managing Director. Option
C discusses driving growth purely by focusing on customers of the greatest value, which
does not fully reflect the Managing Director's goal. Option D mentions "predicting"
purchasing behavior, which is not explicitly mentioned by the Managing Director.
2. Option B is the most accurate answer. Profit margins cannot be directly calculated from the
data in Exhibit 3, as it only presents revenue data for the first 90 days. Option A is a
reasonable conclusion based on the relationship between revenue in the first 90 days and
one-year value. Option C can be concluded by calculating the average of the "Number of
Transactions" column, which equals 2.44. Option D can be concluded by calculating the
average of the "Average One Year Value" column.
3. Option D is the correct choice. Average transaction revenue can be calculated by dividing
the total revenue by the number of transactions. The ranking of the five quintiles, from
lowest to highest average transaction revenue, is as follows: 1 ($71.82), 3 ($80), 2 ($85.38), 5
($85.96), 4 ($97.31).
4. Option C is the correct answer. To calculate the total increase in one-year value if
customers in Quintiles 1 through 4 increased to the next highest quintile, you need to
calculate the difference in one-year value between each quintile and the next highest
quintile and then sum these differences. The total increase is $2,500,000.
5. Option A is the best choice. For customers purchasing Electronics, there was a 3.8% lift in
transactions and a 5% lift in the number of customers making transactions. Therefore, the
number of transactions per customer compared to the control group was 98.9% (100% +
3.8% - 5%), which represents a "lift" of -1.1%. Option B cannot be determined due to a
lack of data on the number of customers in each product segment. Similarly, Option C
cannot be determined due to a lack of data on the number of transactions in each time
segment. Finally, Option D cannot be determined for the same reasons as Option C.
6. Option A is the correct choice. There are 100,000 customers in total in the pilot, and the
control and pilot groups are split equally, with 50,000 in each group. If 10% of the control
group made transactions, this equals 5,000 customers. From the bottom right-hand corner
of Exhibit 4, we can determine that the number for the pilot group was 1.7% higher, which
equals 5,000 x 101.7% = 5,085.
7. Option B is the most accurate answer. From the total of the 4–6-week column, the number
of transactions was negatively impacted to a greater extent than the number of customers
making transactions. This implies that the number of transactions per customer must also
have been negatively impacted, which contradicts the statement in Option B. Option A can
be concluded, as there was a 0.0% lift in the number of customers making transactions in
the total for the Clothing/Apparel row. Option C can be concluded because the figures in
the total column for Electronics are higher than for all other totals. Option D can be
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 concluded because the figures in the first two columns of the row 'Other' are on average
higher than those in the 3rd and 4th columns.
8. Option B is the correct choice. Option B may be helpful in understanding the execution of
the pilot but would not help in determining its impact in terms of transactions or revenue.
Option A would help determine the impact of the pilot on revenues. Options C and D
would help understand in greater detail which segments of the customer group were most
impacted by the pilot.
9. Option C is the most likely reason for the team member's statement. This option is likely to
impact whether a significant proportion of the pilot group read the emails they were sent,
and this impacts the results of the pilot, which is the topic of the meeting with the
Managing Director. Option A is unlikely to be a concern of the team or the Managing
Director, given that a control group was planned before the pilot began. Option B is
unlikely to be the reason, as sending emails not related to the pilot is not a measure of how
well the staff executed the pilot. Option D refers to something that could happen in the
future, which is not the topic of the meeting with the Managing Director.

WFGLA

1. Option C is the least relevant question for the team to answer. While the President's aim is
to increase donations, the question about contacting and communicating with donors in a
lower-cost way does not directly address the goal of increasing donations but focuses on
cost reduction. Options A, B, and D are more directly related to the objective of increasing
donations.
2. A – The total amount of donations collected by other WF offices across the U.K. would be
the least helpful information because it doesn't directly provide insights into WFGLA's
specific challenges or strategies for increasing donations. Options B, C, and D are more
relevant as they pertain to WFGLA's donor base, campaign effectiveness, and comparisons
with other offices, which are directly related to the organization's goals.
3. A – The total amount of donations collected by other WF offices across the U.K. is less
relevant in determining campaign effectiveness for WFGLA. Options B, C, and D are more
pertinent as they focus on WFGLA's specific data and performance, helping assess its
campaign effectiveness in relation to its goals.
4. B – Based on the information provided in Exhibit 5, Region G has the highest campaign
effectiveness (23.1), indicating that it's performing better in terms of donations per
campaign pound spent compared to other regions. Options A, C, and D do not provide
relevant information about campaign effectiveness in the context of Exhibit 5.
5. B – The information in Exhibit 6 suggests that WFGLA has lower contact with employees
in small companies compared to medium and large companies. Option B is most likely to
be true as it aligns with the data in Exhibit 6. Options A, C, and D make assumptions or
conclusions not supported by the given information.

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 6. B – The question asks for the current annual donation of a Blue-Collar employee with
frequent contact in a medium company. Based on the information provided, this is £50.
Option A is not directly related to the current donation amount but pertains to donation
potential. Options C and D are not relevant to determining the current donation amount.
7. A – Option A focuses on donation potential, which is not the primary concern when
deciding the prioritization of employee segments for WFGLA. Options B, C, and D are
more relevant as they consider factors related to resource allocation, campaign success
probability, and past campaign effectiveness, which directly impact the prioritization
decision.

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