I am a sales manager with many years experience working with multinationals. I attended a second stage interview a few weeks ago at a British/Indian multinational and was asked to spend as much as 20 minutes in this lavishly furnished conference room deciding what my answer to this question would be. Just one question and that was it. According to the HR person who coordinated the “funny” test, the shorter the time I spend, the better, but the maximum was 20 minutes. The 4 candidates with the shortest correct times would be shortlisted for the final interview. Only 3 candidates at a time and there were about 16 of us scheduled differently.

At the end of my test, I met with my fellow test writers outside and we all laughed at how the test was such a waste of time since we all had the same answers. Actually, the argument was on who the fastest was and who would eventually be shortlisted for the final stage. We went our ways… but little did we know that …

The question was (phrasing it in my words as close as possible to the real question) :

You bought 800 cartons of spaghetti in Badagry for N30,000. By the time you arrived in Mile 2 which is 10 kilometers from Badagry, your total cost was N34,000. If you had gone straight from Badagry to Ketu which is 20 kilometers from Badagry, what would your cost have been putting into consideration that distance would not get you a transportation discount and the rates of transportation are strictly dependent on distance covered ?

a) Over N38,000
b) N38,000
c) Less than N38,000
d) About N40,000


We all chose (b) N38,000. Did we miss out on sometime ? Do I still expect a call from the multinational ? I’d really like to work there… such a lovely environment…

It's clearly stated, distance would not be discounted and it's all sorely dependent on distance covered. Some people will go and do oversabi and fail. 38k it is

What I cant understand is why a multinational would give highly experienced managers 20 minutes to figure this out. A friend of mine who works in the same multinational (and who forgot to alert me on this before the test) eventually told me that this is their new trend. According to him, all their 2nd stage interviews now are just one question, with a 20 minute answering time. If the answer is this obvious, did we need 20 minutes ?

I feel there is more to this

baltty:
What I cant understand is why a multinational would give highly experienced managers 20 minutes to figure this out. A friend of mine who works in the same multinational (and who forgot to alert me on this before the test) eventually told me that this is their new trend. According to him, all their 2nd stage interviews now are just one question, with a 20 minute answering time. If the answer is this obvious, did we need 20 minutes ?

They're playing on your mind (plain psychology). The time allowed gives the impression that the answer will not be an obvious one.

Yes, you're right but when I called one of my fellow test writers, he said he "heard" the sales director said a "true" sales manager would not need more than 20 seconds to pick the right answer. This left me shocked as it gives the impression that there is more to the question than meets the eye. Besides, its days now and neither of us that picked the same answer has been called for the next stage. Has anyone gone through a similar experience ?

Yes you’re right. There is more to the question than meets the eye. And no, your answer is not correct. N38,000 is certainly not the right answer. Give me a short while to eat and rest and when I return, I shall clearly explain to you why your answer is wrong and what your answer should have been. Afterwards, you’ll certainly agree with the sales director that a real sales manager ought to figure out the answer in seconds. If you’re not armed with the right theory, you can never ever answer this question right.

polinpo:
Yes you’re right. There is more to the question than meets the eye. And no, your answer is not correct. N38,000 is certainly not the right answer. Give me a short while to eat and rest and when I return, I shall clearly explain to you why your answer is wrong and what your answer should have been. Afterwards, you’ll certainly agree with the sales director that a real sales manager ought to figure out the answer in seconds. If you’re not armed with the right theory, you can never ever answer this question right.

Only an economist can answer this question right. The sales director probably is looking for a sales manager with a background in economics. He knows the average sales manager was trained on the job and so was trying to weed out the quacks.

Polinpo is right. Your N38,000 answer was certainly wrong. Without the right economics theory, you cant answer this question right.

All the Adam Smith dem,, get in here.

I tire ooo.

If any recruiter puts me through this kind of psychological trauma all in the name of employment, I wont mind walking out on them o. The question is too dicey and the lines between the answers are too thin.

polinpo:
Yes you’re right. There is more to the question than meets the eye. And no, your answer is not correct. N38,000 is certainly not the right answer. Give me a short while to eat and rest and when I return, I shall clearly explain to you why your answer is wrong and what your answer should have been. Afterwards, you’ll certainly agree with the sales director that a real sales manager ought to figure out the answer in seconds. If you’re not armed with the right theory, you can never ever answer this question right.

Here is the answer to this question.

The question is based on the Econometrics theory of Linear regression and its applicability to commercial considerations.

The product cost = N30k

Logistics to Mile-2 cost = N4k

Total cost to Mile-2 = N34k

What makes up the logistics costs = packaging charges, loading charges, transport, etc

Amongst all of these variables, only one changed… transport. Why then would you incorrectly make a linear regression between the extra miles and the total cost of logistics ? Consequently, even if the buyer is now covering twice the distance from Badagry to Mile 2, the logistics cost will not be assumed to double along with it (inappropriate linear regression) as the other charges are paid just once and not twice and only the transport chunk will be doubled not the entire logistics cost.

The answer, therefore, is unequivocally (c) Less than N38,000. This is because when you double the logistics cost due to the distance that was doubled, you must resist the temptation of making an inappropriate linear regression by providing for the drop in cost for the charges that will not be paid twice but once. This is where the “less” comes in. “Less” therefore stands for all the costs that are incurred once. Understood ?

Does anyone wish to debunk this ?

polinpo:



Here is the answer to this question.

The question is based on the Econometrics theory of Linear regression and its applicability to commercial considerations.

The product cost = N30k

Logistics to Mile-2 cost = N4k

Total cost to Mile-2 = N34k

What makes up the logistics costs = packaging charges, loading charges, transport, etc

Amongst all of these variables, only one changed… transport. Why then would you incorrectly make a linear regression between the extra miles and the total cost of logistics ? Consequently, even if the buyer is now covering twice the distance from Badagry to Mile 2, the logistics cost will not be assumed to double along with it (inappropriate linear regression) as the other charges are paid just once and not twice and only the transport chunk will be doubled not the entire logistics cost.

The answer, therefore, is unequivocally (c) Less than N38,000. This is because when you double the logistics cost due to the distance that was doubled, you must resist the temptation of making an inappropriate linear regression by providing for the drop in cost for the charges that will not be paid twice but once. This is where the “less” comes in. “Less” therefore stands for all the costs that are incurred once. Understood ?

Does anyone wish to debunk this ?

I thought as much. You're certainly on point.

I knew this was inappropriate linear regression the minute I saw it. That is why the sales director claimed a real sales manager would pick the right answer in seconds. This is because real sales managers expedite shipments all the time to customers and understand that packaging, loading, etc all form part of the customer's total costs which are often paid just once at the point of loading even if the customer instructs his truck not go to warehouse A but to continue to his warehouse B.

This is a real life question that only business school thorough breds can answer.

Sorry pal... this explains why you've not gotten a call from them since. If I had been there, I probably would have answered it in seconds and gotten the call back.

bonapri:




I thought as much. You're certainly on point.

I knew this was inappropriate linear regression the minute I saw it. That is why the sales director claimed a real sales manager would pick the right answer in seconds. This is because real sales managers expedite shipments all the time to customers and understand that packaging, loading, etc all form part of the customer's total costs which are often paid just once at the point of loading even if the customer instructs his truck not go to warehouse A but to continue to his warehouse B.

This is a real life question that only business school thorough breds can answer.

Sorry pal... this explains why you've not gotten a call from them since. If I had been there, I probably would have answered it in seconds and gotten the call back.

Yours and Polinpo’s responses have been insightful, very correct apparently. What’s probably not correct is your attitude right there. This sort of one-upmanship is uncalled for. Seeing you didn’t attend the test the least you can do is to wish them goodwill.

Actually looking at it from another angle, the 4000 cost getting the shipment to mile 2 includes the cost of also going from mile 2 to Badagry, so moving the goods to Ketu won't cost up to 4000, so I will go with less than 38000.

The ansa is less than 38000 sha

Xcely:


Yours and Polinpo’s responses have been insightful, very correct apparently. What’s probably not correct is your attitude right there. This sort of one-upmanship is uncalled for. Seeing you didn’t attend the test the least you can do is to wish them goodwill.

I am very very sorry if I came out as arrogant. I didnt mean to. That's not my nature. I was probably too excited to see that I was certainly on the right track and that some other economist was thinking what I was thinking. Please excuse me once again.

But in addition, this kind of mind bugging mono-question tests are gradually becoming the order of the day. Some of my friends also talked about it yesterday evening at Banilux when I threw the question open to them on reading this thread. Obviously, some big companies are gradually adopting this method and the questions usually almost always revolve around inappropriate linear regression, logic fallacies, the law of one price (LOOP), etc when the position is in the commercial realm.

Na wa ooo. I just dont know what to say again. Let me come and be going...

This question is so weird that if you're not conscious of the inappropriate linear regression trick, even if you're asked to seat in the coosiest and most tastefully furnished boardroom for 2 hours you wont still think in the right direction. But if you're a sales manager who actually joins customers in preparing their shipments all the time, you will certainly know in what direction to think and even 10 seconds will be too much for you.

Though the sales director sounded arrogant in saying the person they're searching for would figure out the right answer in less than 20 seconds, I now see what he means. With this, his 20 seconds now even sounds like an understatement, too long.

The right person should be able to figure this out in 10 seconds except he's not a well-bred sales manager. From the look of things he may still be searching.

Abeg, na which multinational ooo...

By the way, what multinationals are guilty of this ? Which of them spring this kind of surprises on people ?

In a situation like this, shouldn't the company have informed the test writers that it would be a mono-question test ? If this is the new trend, shouldn't those new to it be made aware to avoid surprises ?

I dont think this was right of the company. Entry level candidates would have a hard time with this kind of test.

This is funny oo. Cant there be another way around this ?

Is there any other way a question like this can be rephrased to trap an unsuspecting candidate ?

10 Top-Employee Qualities That Require Zero Talent & Zero Certificates

1. Being Prepared
2. Being on Time
3. Good Work Ethic
4. Positive Body Language
5. Energy
6. Sufficient Effort
7. Passion
8. Good Attitude
9. Doing Extra
10. Being Docile and Coachable


With these, the test would have been very easy

Polinpo is correct. I remember such funny but interesting questions in Managerial Economics during my MSc. Anyone with a good background in Economics, Business, Marketing, etc will likely get it right. The packaging and logistics remain fixed in this instance and only the actual transport cost will vary. So, the answer should be less than N38,000. We should all be prepared for such surprises at job tests these days. Even Business Schools/PG Schools are now using such tests. I once attended an MSc entrance test like that. I think I have also learned from some of the comments here.

I agree with iamclime.

A multinational company should have a good lorry to convey 800 cartons of spaghetti. So 4000 fuel should be enough from ketu-badagry-ketu. 4000 fuel is about 20litres. So for me the answer should be less than 38000K. Thanks.