### SBI clerk reasoning free practice sets: SBI clerk reasoning free practice sets that are essential to solve for exams

The reasoning section of most of the competitive exams is extremely scoring. You need to just get hang of the scope and syllabus of the subject and practice well. For this solve the SBI clerk reasoning free practice sets and measure your performance and understanding of concepts throughout the practice. Keep a track of your initial performance with less preparation and gradual performances once you start with preparation. You need to ensure that the graph shows positive results. Slow down with test taking if you feel no/less growth in your score and focus more on understanding the concepts thoroughly and reviewing the solutions of previous tests. SBI clerk reasoning free practice sets comes with solutions, therefore review them thoroughly and carry forward the learning through this to your tests ahead.

**Directions for the question set:**

Ram Roy was the head of a Steel manufacturing company that was trying to develop a new product. Roy, along with his friend Prashant Agrawal, assessed that such products had mixed success. Roy and Agrawal realized that if a new product (a drug) was a success, it may result in sales of 100 crores but if it is unsuccessful, the sales may be only 20 crores. They further assessed that a new drug was likely to be successful 50% of times. Cost of launching the new drug was likely to be 50 crores.

**Question 1: How much profit can the company expect to earn if it launches the new drug (suppose there are no additional costs)?**

A. 12 crores

B. 10 crores

C. 10.5 crores

D. 11 crores

E. 11.5 crores

**Question 2: If Agrawal and Roy decide to launch the product despite unfavorable test marketing, how much profit can the company expect to earn?**

A. 10 crores

B. –13.2 crores

C. –36.8 crores

D. –46.8 crores

E. –16 crores

**Question 3: How much profit can the company expect to make if the product is launched after favorable test marketing results.(assume there are no additional costs)?**

A. 13.8 crores

B. 11.5 crores

C. 8.5 crores

D. 10 crores

E. 24 crores

**Question 4: What is the probability of product failure if Roy and Agrawal decide to test market it?**

A. 0.14

B. 0.35

C. 0.28

D. 0.21

E. Cannot be computed

### Answers and Explanations: Click the down arrow to expand

**Answer 1: (B)** The cost of launching the product = 50 crores

The probability of the success of the product is 50%.

Hence, the profit = (50 % of 100 + 50% of 20) – 50 = 10 crores.

Now, Roy and Agrawal were in a quandary whether the company should go ahead and market the drug. They contacted Raj Adhikar, a common friend for advice. Adhikar was of the opinion that given the risky nature of launch, it may be a better idea to test the market. Agrawal and Roy realized test marketing would cost 10 crores. Adhikar told them the previous test marketing results have been favorable 70% of times and success rate of products favorably tested was 80%. Further, when test marketing results were unfavorable/the products have been successful 30% of the times. The correct option is (B)

**Answer 2: (E)** Required profit = (30% of 100 + 70% of 20) – (50 + 10) = –16 crores.

The correct option is (E)

**Answer 3: (E)** The success rate of a product if its results are favorable = 80%

Total cost = 50 + 10 = 60 crores

Sales = 80% of 100 + 20% of 20 = 84 crore

Hence, the profit = 84 – 60 = 24 crores.

The correct option is (E)

**Answer 4: (B)** Required probability = 0.70 × 0.20 + 0.30 × 0.70 = 0.14 + 0.21 =0.35

The correct option is (B)

**Extra tips for SBI clerk reasoning free practice sets:**

• Prepare a timeline of when and how you would cover SBI clerk reasoning free practice sets.

• Do not mark the answer for a question if you are unsure as it will reduce your potential score.

• Ensure that you do not miss practicing any concept/topic while solving SBI clerk reasoning free practice sets. If any topic goes undone through this, note them down and practice them in the last.