KPMG Past Questions And Answers


166)

The committee on sexual discrimination in the workplace has highlighted Supremo Company as a chief offender. Of the twenty senior executives in the firm, only one is a woman. And of the forty junior executives, only five are female.
Supremo could best defend itself against the charges by showing that

The Best Option is E
Explanation
To defend itself against a charge of discrimination, the company will have to show its selections were made on the basis of merit not sex. The best way to do that is to show that none of the women who were rejected had better qualifications than the men who were appointed. Answer E implies just that but without specifying the sex of the rejected applicants
167)

It is not unusual to see the ball fall into a black slot on a roulette wheel four times in a row. But for it to fall five or six times in a row into the same color is very unusual. Therefore you can win money by waiting for a run of five of the same color and then betting against that color. If the roulette wheel in question is a fair wheel, which of the following observations or facts, if it were true, would best reveal a fallacy in the logic?

The Best Option is D
Explanation
In critical reasoning questions many of the answer choices can be factually correct or reasonable sounding, and so eliminating without understanding the question is not possible. Your job is to find the best answer to the specific
question, so read carefully. A fallacy in the logic is an error in the thinking behind the proposal. The person concludes that if you wait for a run of five of the same color and then bet against the color, you WILL win. Now the logic behind that suggests that the probability of getting that same color again is low. But just as tossing a fair coin always gives an even chance of a head or tail no matter what has gone before, the probability of getting a color is always the same no matter what has gone before.
168)

Increase in the level of high-density lipoprotein (HDL) in the human bloodstream lower bloodstream-cholesterol levels by increasing the body's capacity to rid itself of excess cholesterol. Levels of HDL in the bloodstream of some individuals are significantly increased by a program of regular exercise and weight reduction.
Which of the following can be correctly inferred from the statements above?

The Best Option is D
Explanation
If increased HDL levels cause reduced cholesterol levels and if a certain program increases HDL levels in some individuals, it follows that some individuals who undertake that program achieve reduced cholesterol levels. D is thus correctly inferable and the best answer. A cannot be correctly inferred because the statements do not establish any connection between being underweight and levels of cholesterol. Neither of B and E is inferable, since there is no indication that exercise alone is either necessary or sufficient to increase HDL levels or to decrease cholesterol levels. C is inappropriate because other methods of cholesterol reduction are not addressed.
169)

The cost of producing radios in Country Q is ten percent less than the cost of producing radios in Country Y. even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from Country Q to Country Y than to produce radios in Country Y.
The statements above, if true, best support which of the following assertions?

C is the best answer
Explanation
If the tariff on importing radios from Country Q to Country Y were as high as ten percent or more of the cost of producing radios in Y, then, contrary to what the passage says, the cost of importing radios from Q to Y would be equal to or more than the cost of producing radios in Y. thus, the tariff cannot be that high, and C is the best answer. A and E give possible partial explanations for the cost difference, but neither is supported by the passage because the cost advantage in Q might be attributable to other factors. B and D are both consistent with the information in the passage, but the passage provides no evidence to support them.
170)

It has been suggested that long-term prisoners, on release from jail, be given a reasonable state pension to reduce the likelihood of their resorting to crime. Most people instinctively reject the suggestion as they feel it would be like rewarding
criminal activity.
The supporters of the prisoners’ pension scheme have criticized those who reject this possibility, by claiming that for the critics......
Which of the following is the most logical completion of the sentence above?

Correct Answer: B
Explanation:
Those critics who reject the idea of pensions for ex-prisoners are rejecting the scheme ‘instinctively’ because they do not want to ‘reward’ crime. So for these people it is more important to be seen to oppose crime than it is to be seen to
reduce the chances of the offenders committing a crime. This does not mean that they do not attach importance to crime prevention (eliminate C), nor that they are too concerned with money (eliminate D). The issue is more about punishing criminals, and so punishment is more important than crime prevention (correct answer B). ‘Emotion’ is not the issue so A is incorrect, and so is E which does not follow from anything in the argument.

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