YGCC PST-like Test Summer 2012 Yale Graduate Student Consulting Club (YGCC) Before your start Yale Graduate Student Student Consulting Consulting Club (YGCC) are pleased pleased to present 2012 YGCC PST-like Test. Test. Inspired by the McKinsey McKinsey Problem Problem Solving Test (PST), this test prepares you for the problem solving you will face during the consulting job search. You must draw quantitative quantitative and qualitative qualitative conclusions conclusions from the data data presented. The qualitative/logic questions are not quite as difficult as those in the McKinsey PST. However, the quantitative analyses are nearly as rigorous. While useful in most most circumstances, circumstances, the ideal time time to take this test test is after doing the YGCC arithmetic exercises, but before taking the McKinsey’s own practice PSTs. We recommend that you print out this test and perform all analyses on those printed sheets only. DO NOT use a calculator. We expect you finish it within 45min. We would like to thank thank A. Raja Banerjee Banerjee for development of of these exercises, exercises, Alice Qinhua Zhou Zhou for editing and formatting formatting of the test, test, and Ji Liu and Brian Yordy Yordy for their feedback on these exercises. exercises. We also want to thank our 2012 club sponsors sponsors for their continued support of YGCC, including the Boston Consulting Group, McKinsey & Company, and Consulting Guru. Enjoy your test and best wishes for your consulting career!
2012 Annual Club Sponsors:
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Your client owns a chain of coin-operated laundromats, and is looking to buy a new one, called Main Wash, in a downtown area of a small US city. We have the following information on Main Wash. Main Wash open at 7am. With 20 sets of machines (washer and dryer pair), the last wash starts at 8pm. On average, each person brings 2 loads to the laundromat, and Main Wash charges $5 for each complete laundry cycle or set. Each wash-cycle costs Main Wash $1.00 in utility costs, lasting one hour. Each drying cycle lasts 20 minutes, costing Main Wash 50 cents per cycle. There is always one person on staff at the Laundromat, paid $8/hr. Their heat and hot water is managed with Natural Gas. We have also identified the following customer usage patterns at Main Wash. Main Wash customer usage of a typical week
9:00 PM
Mon
Tue
Wed
Thur
Fri
Sat
Sun
closed
closed
closed
closed
closed
closed
closed
Usage High 100%
8:00 PM
Medium
70%
7:00 PM
Low
40%
6:00 PM 5:00 PM 4:00 PM 3:00 PM 2:00 PM 1:00 PM 12:00 PM 11:00 AM 10:00 AM 9:00 AM 8:00 AM 7:00 AM
1: What is the total yearly revenue from Main Wash?
A: $277,000 B: $5,540 C: $11,080 D: $540,000 2: Which of the following statement on the average usage is NOT true? (Evening: 5PM to 9PM)
A: Weekday evening usage is higher than weekend evening. B: Machines runs at full capacity during weekend daytime. Yale Graduate Student Student Consulting Co nsulting Club © Consulting
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Suppy Shoes believes that Scenario C is most likely, and wants to enter while focusing on the online shoe market. However, they want to focus on 3 markets with high populations that are exhibiting high population growth. We have the following information on cities in India. The bubble size represents the GDP of each city (in billions), i.e. the bigger the bubble, the higher city GDP.
20: Which set of cities should they prioritize? A: Kolkata, Chennai, Jaipur B: Mumbai, Kolkata, Bangalore C: Surat, Ahmedabad, Delhi D: Bangalore, Ahmedabad, Hyderabad 21: Which of the following information is LEAST relevant to be considered for market entry? A: Regulations governing storespace B: Current shoe style trends in each city C: GDP growth in each city D: Geographic distance of these cites from each other
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