ACET

2016
QUESTION PAPER AND
ANSWER KEY
 Institute of Actuaries of India
ACET MAY 2016
Mathematics
1. If and are two unit vectors and is the angle between them then is a
unit vector if
A.
B.
C.
D. . 1 mark

2. If the position vectors of the two points A and B are and

respectively , then is
A.
B. 53
C. 1
D. 6. 2 marks

3. Fill in the blank: A unique polynomial of degree __ passes through given

points on the plane (no pair of points lying above one another).
A.
B. or less
C.
D. or less. 1 mark

4. The natural domain of the real function defined by is

A.
B. (-
C. [1,
D. . 1 mark

5. If and , then is
A. 4
B. 10
C. 16
D. 9. 1 mark
6. The McLaurin series expansion for is
A.
B.
C.
D. . 1 mark

7. is resolved into partial fractions as

A.

B.

C.

D. . 1 mark

8. The roots of the quadratic polynomial are

A.
B.
C.
D. . 2 marks

9. is
A.
B.
C.
D. . 1 mark

10. Let . Then is

A. +

B. +

C. +

D. + . 2 marks
11. The interval in which the function is decreasing in is
A.
B. (1,
C.
D. . 2 marks

12. If is an even function, then for is equal to

A. 0
B.
C.
D. . 1 mark

13. The value of is

A.
B.
C.
D. . 3 marks

14. If square matrix of order 3 such that then a solution for A is

A.

–
B.

C.

D. 2 marks

15. If A = [2 0 1] then the rank of is

A. 3
B. 0
C. 1
D. 2. 1 mark
16. The table below gives the growth of a plant ( ) in mm on different days ( ).

1 3 5
0 4 9

Assuming linear relationship between and in between the observed values, the
interpolated value of when is

A. 5 mm
B. 6 mm
C. 6.5 mm
D. 7.5 mm. 1 mark

17. The value of is

A. 150
B. 32
C. 152
D. 30. 1 mark

18. Mr. A starts repaying a loan with the first monthly installment of Rs. 1000 and
he increases the subsequent installments by Rs.50 every month. The amount he
pays in the 30th installment is

A. Rs. 1500
B. Rs. 2500
C. Rs. 3000
D. Rs. 2450 1 mark
 Statistics
19. If = then is
A. 66
B. 220
C. 24
D. 12 1 mark

20. The shoe sizes of 20 students are plotted in the following dot diagram

x
x x
x x x
x x x x
x x x x
x x x x x x
5 6 7 8 9 10

A. The mean shoe size is smaller than the median but larger than the mode
B. The mean shoe size is larger than the median but smaller than the mode
C. The mode of the shoe sizes is smaller than the median and the mean
D. The mean shoe size is smaller than the median and the mode. 3 marks

21. The standard deviation for the population of numbers

is equal to
A. 9
B. 13
C. 11.5
D. 18. 1 mark
22. A company producing electric relays has three manufacturing units producing
respectively 50, 30 and 20 percent of its product. Suppose that the probabilities
that a relay manufactured by these plants is defective are, respectively, 0.02, 0.05
and 0.01. If a relay is selected at random from the output of the company, the
probability that it is defective is
A. 0.5
B. 0.08
C. 0.27
D. 0.027. 1 mark
23. The events A and B are such that and . Then
is
A. 1
B.
C.
D. 0. 1 mark
24. A random variable X has probability density function

The value of k is

A. 2
B. 6
C. 5
D. 4. 2 marks

25. A random variable has exponential distribution with probability density

function

The coefficient of variation of is

A.
B.
C.
D. . 2 marks
26. The random variable X has Poisson distribution with .
The variance of this distribution is
A. 1
B.
C.
D. . 2 marks
27. Which of the following statements is not true?
A. The covariance between X and Y is zero implies the correlation coefficient is
zero.
B. The correlation coefficient between and +1
C. The correlation coefficient between X and Y is not affected by change of
origin and scale.
D. The covariance between X and Y is zero implies the random variables are
independent. 1 mark
 28. For a bivariate data on X and Y, it is given that the correlation coefficient is ,
the variances of X and Y respectively are 4 and 144. The regression coefficient of
X on Y is
A.
B. 4
C.
D. 2. 2 marks

Data Interpretation
Study the following graph of monthly exports and imports (in Rs. million) in a particular
year, given below, and note the information given in it to answer the Questions 29 to 33.

230

225

220

215

210 Exports
Imports
205

200

195

190
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

29. The maximum per cent fall in exports compared to the previous month was
exhibited in the month of
A. May
B. June
C. July
D. September. 2 marks
30. In how many months was there a fall in exports, but a rise in imports compared to
the previous month?
A. 1
B. 2
C. 3
D. 4. 1 mark
 31. Trade balance for the whole period shown in the graph (in Rs. million) was
approximately.
A.
B.
C.
D. . 3 marks
32. Fill in the blank: The highest import was about ----- times the lowest import.
A. 3.1
B. 1.1
C. 5.1
D. 7.1. 1 mark
33. In which of the following months was the largest deficit exhibited?
A. March
B. July
C. August
D. November. 1 mark

The following pie chart shows the amount of subscriptions generated for India Bonds
from different categories of investors. Use the information given in it to answer
Questions 34-38.

National Banks, 2%
Others, 4%

Offshore
Funds, 16%
Corporate
Houses, 34%

FII, 33%
NRI, 11%

Subscriptions Generated for India Bonds

34. If the investments by Offshore Funds are Rs. 5820 crores, then the investment by
corporate houses and FIIs together is approximately
A. 24000 crores
B. 24400 crores
C. 25400 crores
D. 25600 crores. 1 mark
35. What percentage of the total investment is coming from either National Banks or
NRIs?
A. 33
B. 11
C. 13
D. 22. 1 mark
36. What is the ratio of investment flows into India Bonds from National Banks to
Corporate houses?
A. 1:4
B. 1:3
C. 1:17
D. 3:1. 1 mark
37. In the NRI sector, approximately how many degrees should be there in the central
angle?
A.
B.
C.
D. . 1 mark
38. If the total investment flows from Offshore Funds were to be doubled in the next
year and the investment flows from all other sources had remained constant at
their existing levels for this year, then what would be the percentage of Offshore
Funds investment in the total investment flows into India Bonds in the next year
(approximately)?
A. 27.6%
B. 32.0%
C. 25.6%
D. 30. 0%. 2 marks
 English
39. Fill in the blank: The songs in most of the Indian movies can be ignored as they
are usually not ____ to the story.
A. intervened
B. innate
C. integral
D. integrating. 1 mark

40. Fill in the blank: A big part of the population in urban cities is suffering from
stress ____ by overwork.
A. brought
B. brought on
C. brought around
D. brought for. 1 mark

41. Fill in the blank: The boy was too shy to ______ the girl ______.
A. ask, out
B. ask, around
C. take, around
D. take, away. 1 mark

42. Fill in the blank: He ______ with the fight as his opponent was very ______.
A. walked in, strong
B. walked off, weak
C. won, weak
D. lost, strong. 1 mark

43. One with an irrational urge to steal in the absence of an economic motive is called
A. Shoplifter
B. Kleptomaniac
C. Drapetomaniac
D. Pilferer. 1 mark

44. Correct the underlined part of the following sentence: He does not need to explain
anything this incident – his behavior is speaking itself.
A. has been speaking itself
B. speaks itself
C. speaks for itself
D. speaks about itself. 1 mark
45. The quality of unselfish concern for the welfare of others is called
A. Altruism
B. Humanism
C. Egocentrism
D. Agathism. 1 mark

46. The meaning of the phrase “to pull a rabbit out of hat” is
A. to pull someone out of danger.
B. to bring out a problematic situation which was hidden
C. to do something surprising
D. to expose hidden enemies. 1 mark

47. Find out the alternative which will replace ‘?’

Cousin : Extended :: Son : ?
A. Family
B. Father
C. Nuclear
D. Uncle. 1 mark

48. Find out the alternative which will replace ‘?’

Meek : Subservient :: Particular : ?
A. Modest
B. Furious
C. Chesty
D. Fussy. 1 mark

49. Correct the underlined part of the following sentence: In Roman times, getting
out of bed on the left side would be thought as bringing bad luck.
A. was thought to bring bad luck
B. had been thought as to bring bad luck
C. was thought bringing bad luck
D. used to be thought as a bad luck. 1 mark

50. Fill in the blank: The cricket tournament was scheduled to be held in April but
was ______ due to general elections.
A. crossed out
B. dropped off
C. put off
D. turned down. 1 mark
51. Fill in the blank: You ______ the invigilator in yesterday’s examination before
you borrowed the log table from your classmate.
A. must inform
B. ought to have informed
C. could inform
D. need to have informed. 1 mark

52. The word which is not the synonym of "to misconceive", is

A. to misunderstand
B. to misinterpret
C. to be amiss
D. to miscarry. 1 mark

53. Identify the correct sentence

A. The ship was drowned in the ocean
B. The professor married with a doctor
C. The police are coming to catch the thief
D. One cannot buy all what one likes. 2 marks

54. The first and sixth sentences of a passage are given in the beginning and in the
end, respectively. The middle four sentences have been jumbled up. These are
labelled as P, Q, R and S. Find out the proper order for the four sentences.
S1: As the pressure on land rises, more and more marginal areas in the world
are being used for agriculture.
P: While irrigation may be the most obvious response to drought, it has
proved costly and can only benefit a fortunate few.
Q: Much of this land is located in the arid or semi-arid belts where rain falls
irregularly and much of the precious water is soon lost as surface runoff.
R: There is now increasing interest in a low cost alternative - generally
referred to as "water harvesting".
S: Recent droughts have highlighted the risks to human beings and livestock,
which occur when rains falter or fail.
S6: Water harvesting is the collection of runoff for productive purposes.
The proper sequence should be
A. QRSP
B. PSQR
C. QSPR
D. RPSQ 2 marks
55. The first and sixth sentences of a passage are given in the beginning and in the
end, respectively. The middle four sentences have been jumbled up. These are
labelled as P, Q, R and S. Find out the proper order for the four sentences.
S1: The election of the President of the United States is an indirect voting
process.
P: If both votes result in an absolute majority, the election is over.
Q: Electors cast votes for the President.
R: If a majority of electors do not vote for President, the House of
Representatives chooses the President.
S: Citizens cast ballots for a slate of members of the U.S. Electoral College.
S6: Presidential elections occur quadrennially on Election Day, which since
1845 has been the Tuesday after the first Monday in November.
The proper sequence should be
A. PQRS
B. SQPR
C. SPRQ
D. QRPS 2 marks

56. Fill in the blanks: Freeware is ___(i)____ software that is available for use at no
monetary cost. In other words, freeware may be used without ____(ii)____ but
may usually not be modified, re-distributed or reverse-engineered without
the author's permission. The source code of freeware is typically not
____(iii)____, unlike open source software which are often distributed free of
charge. (2 marks).
A. (i) non-proprietary, (ii) permission, (iii) sold
B. (i) free, (ii) installing, (iii) written
C. (i) proprietary, (ii) payment, (iii) available
D. (i) substandard, (ii) license key, (iii) updated. 2 marks

57. Classify each of the statements given below as Fact (F), Inference (I), Judgment
(J).
I. Looking at her eyes, it seems that she did not sleep last night.
II. Her eyes are red and puffy.
III. She must not be taking proper care of her eyes.
A. IJI
B. FFJ
C. IFJ
D. JII 2 marks
58. Classify each of the statements given below as Fact (F), Inference (I), Judgment
(J).
I. Increased frequency of news on crime against women is only a political
hoopla.
II. As the frequency of news on crime against women is increasing, it looks that
the criminal mentality is, in general, increasing in the society.
III. Increased frequency of news on crime against women is only because more
cases are being reported nowadays.
A. FIJ
B. FIF
C. FJI
D. JIJ 2 marks

59. The antonym of "jeopardy" is

A. peril
B. danger
C. secure
D. deprivation. 1 mark

60. Among the words given below, the one which is not an antonym of "about", is
A. astir
B. exactly
C. just
D. on the nose. 1 mark

61. Identify the correct sentence.

A. The student was hopeless to pass
B. The candidate got an employment in the company
C. Although it was very hot, but we played Cricket this afternoon
D. Ramesh takes no care over his work. 2 marks

62. The quality of pizza of a famous local pizza shop has deteriorated over the years.
The costs of the pizzas sold by them have increased fourfold in last ten years.
Which of the following would tend to weaken the argument above ?
A. The volume of sales has increased dramatically over the last ten years.
B. Unprecedented increase in the cost of the raw material has put severe upward
pressures on pizza costs.
C. It has become difficult to get good quality raw material nowadays.
D. The average level of consumer prices overall has increased twofold over the
last ten years. 2 marks
Read the passage below and answer Question No 63:
Climate change in the form of global warming refers to the rise in average surface
temperatures on Earth. The primary cause of climate change is the burning of fossil fuels,
such as oil and coal, which emits greenhouse gases into the atmosphere—primarily
carbon dioxide. The gases trap heat within the atmosphere, which can have a range of
effects on ecosystems, including rising sea levels, severe weather events, and droughts
that render landscapes more susceptible to wildfires. Other human activities, such as
agriculture and deforestation, also contribute to the proliferation of greenhouse gases.
While some quantities of these gases are a naturally occurring and critical part of Earth’s
temperature control system, the atmospheric concentration of carbon dioxide did not rise
above 300 parts per million between the advent of human civilization roughly 10,000
years ago and 1900. Today it is at about 400 ppm, a level not reached in more than
400,000 years.
I. The atmospheric concentration of carbon dioxide, today,
i. has increased from below 300 ppm to 400 ppm in the last 116 years
ii. did not change much from the advent of human civilization
iii. did not change much after 1990.
II. The primary cause of global warming is/ are
i. rising sea levels, severe weather events, and droughts
ii. burning of fossil fuels such as oil and coal
iii. both i and ii above.
III. Agriculture
i. is helping in decreasing the emission of greenhouse gases
ii. contributes to the emission of greenhouse gases
iii. helps in decreasing sea level and earth’s temperature.
63. The correct answers to I, II and III are:
A. iii, ii, ii respectively
B. iii, i ii respectively
C. i, ii, ii respectively
D. iii, i, i respectively. 3 marks
 Logical Reasoning

64. Pointing to a photograph, Mitali said, “He is the son of the only son of my
grandfather.” How is the man in the photograph related to Mitali?
A. Brother
B. Uncle
C. Son
D. Father. 1 mark
65. In a certain code, COMPLAIN is written as CMOLPIAN. How is CIRCULAR
written in that code?
A. ICCRLURA
B. CRIUCLRA
C. ICRCLUAR
D. CRIUCALR 1 mark
66. In the Venn diagram given below, V represents the set of all vehicles, M
represents the set of all motorized vehicles, and A represents the set of all
automobiles.

M AA

A person has reached the following conclusions.

I. All automobiles are motorized vehicles.
II. All motorized vehicles are automobiles.
III. Some automobiles are not vehicles.

Based on the diagram, which of the following are valid conclusions?

A. I only
B. III only
C. I and III
D. II and III. 1 mark
67. A watch gains 5 seconds in 3 minutes and was set right at 7 AM. In the afternoon
of the same day, when the watch indicated quarter past 4 o'clock, the true time is
A. 3:45 PM
B. 4:00 PM
C. 4:30 PM
D. 4:15 PM. 1 mark

68. Today is 3rd November. The day of the week is Monday. This is a leap year. What
will be the day of the week on this day after three years?
A. Wednesday
B. Thursday
C. Tuesday
D. Monday 1 mark
69. In the question below, there are three statements followed by two conclusions
numbered I and II. You have to take the given statements to be true even if
they seem to be at variance from commonly known facts and then decide which of
the given conclusions logically follows from the given statements.

Statements: Conclusions:

1) No fan is a cooler. (I) No heater is a tube.

2) Some coolers are heaters. (II) Some coolers are tubes.
3) All tubes are fans.
A. Only (I) is a valid conclusion.
B. Only (II) is a valid conclusions.
C. Both (I) and (II) are valid conclusions.
D. Neither (I) not (II) is a valid conclusion. 2 marks

70. The police rounded up Salman, Aamir, Saif and Shahrukh because one of them
was suspected of having robbed the local bank. The four suspects made the
following statements under intensive questioning.
Salman: Aamir did it.
Aamir : Shahrukh did it.
Saif: I did not do it.
Shahrukh: Aamir lied when he said that I did it.

If only one of the above statements is true, who did it?

a) Salman
b) Aamir
c) Saif
d) Shahrukh. 3 marks
*****
 Institute of Actuaries of India
Solutions for ACET MAY 2016

Mathematics
1. D. .

2. A. =
3. C. Interpolation possible by solving linear equations for unknown
coefficients.
4. C. For the function to be defined the value inside the root must be non-negative. That is,
implies the domain is .

5. B. +1. When x=3.

6. D. by definition.

7. D. implies

Putting we have and by putting we have . Hence,

.

8. A. The roots of are given by . Identifying the

coefficients and constant in we have .

9. B. by definition.

10.B. . Then + ,

since .
11. D. so . In order that decreasing in in an
interval Hence implies which is valid if .

12. C. For , = follows by properties definite integrals.

13. D. Put . Then Further , when and when

, . Hence,
14. B. The eight square matrices A of order 3 satisfying are

. The matrix given in option B is one of these eight choices (plus or minus

sign can be used in any of the three places).

15. C. If A = [2 0 1] then = 5. Hence the rank is 1.

16. C. implies mm.

17. B. and .

By adding, we have

18. D. The repayments are in AP. .

The nth instalment is .
Here, . Therefore, .

Statistics
19. A. If = , then n must be 10. So = =66.
20. C. The shoe sizes of 20 students, after decoding the dot plot are (in ascending order)

The mode is 6; the median (middle most number) is 7, and the mean is certainly larger
than 7. This last fact the apparent from the dot plot, as the centroid of the data has to be to
the right of 7.
21. C. The mean is zero. The standard deviation is the square root of the sum of squares of
the items divided by the number of items.
22. D. Let be the event that the electric relay is defective. Let be the event that
the electric relay is manufactured in plant i.

Hence, , ,
So,
= = 0.027.
23. C. and P( . So,
Hence, .

24. B. implies . So, .

25. B. The mean and variance of the exponential distribution are and , respectively.
26. C. is Poisson and implies . Hence variance is .
27. D. Follows from the properties of the correlation coefficient.

28. A. .

Data Interpretation
29. D. September.
30. B. August and November.
31. B. Trade balance = Exports – Imports. The aggregate for the year is about –10 million.
32. B. .
33. C. August (deficit is ).
34. B. .
35. C. 11% + 2% = 13% ( 11% for NRI and 2% for National Banks).
36. C. .
37. C. .
38. A. .

English
39. C.
40. B.
41. A.
42. B.
43. B.
44. C.
45. A.
46. C.
47. C.
48. D.
49. A.
50. C.
51. B.
52. D.
53. C.
54. C.
55. B.
56. C.
57. C.
58. D.
59. C.
60. A.
61. D.
62. A.
63. C.

Logical Reasoning
64. A. The man in the photograph is son of Mitali's grandfather's son i.e., the son of Mitali's
father. Hence, the man is Mitali’s brother.
65. D. Explanation: First Letter as it is. Second and Third Letter interchanged. Fourth and
Fifth letter interchanged. Sixth and Seventh letter interchanged. Eighth letter as it is.
66. A.
67. B. The watch gains 5 seconds in 3 minutes, which is 100 seconds in 1 hour (3600
seconds), or 1 minute in 36 minutes. From 7 AM to 4:15 PM on the same day, the clock
has passed 9 hours and 15 min, i.e., 555 min ( min). The actual time that has
passed must be min. Thus, the correct time should be 4:00 PM.
68. B. This is a leap year. So, none of the next 3 years will be leap years. Each year will give
one odd day so the day of the week will be 3 odd days beyond Monday i.e. it will be
Thursday.
69. D.
70. C. We solve this problem by assuming that one of them is the robber and then check
whose statement is true of false. We summarize the findings in a table.
Robber → Salman Aamir Saif Shahrukh
Statement ↓
Salman F T F F
Aamir F F F T
Saif T T F T
Shahrukh T T T F
Only column with a single T
Therefore, it must be Saif who did it.
 IAI
Institute of Actuaries of India
ACET OCT 2016
Mathematics
1. The values of x when the real functions and are
equal are
A.
B.
C.
D. . 2 marks

2. The Maclaurins’ series for (with ) is

A.

B.

C.

D. . 1 mark

3. The following table gives, for a given right tail probability and for
different degrees of freedom , the values of .
30 40 60
1.310 1.303 1.296
Assuming simple linear relationship between and , the interpolated value of
when is

A.
B.
C.
D. . 1 mark

4. The value of is
A.
B.
C.
 D. . 2 marks

5. The ratio is resolved into partial fraction as

A.

B.

C.

D. . 2 marks

6. is
A.
B.
C.
D. . 1 mark

7. If then is equal to

A.

B.

C.
D. . 1 mark

8. The function is an increasing function of in

A.
B.
C.
D. . 1 mark

9. The value of is
A.
B.
C.
D. . 1 mark
10. If x and satisfy the equation =64, then is

A.

B.

C.

D. . 3 marks

11. The value of , is (assuming is a constant)

A.
B.
C.
D. . 1 mark

12. The value of is equal to

A.
B.
C.
D. . 2 marks

13. If and , then is equal to

A.
B.
C.
D. . 1 mark

14. Let and . The value of when and are

parallel is

A.

B.
C.

D. . 1 mark
15. If P = then is equal to

A.
B.
C.
D. the identity matrix. 2 marks

16. If , then is (assuming in superscript denotes

transpose)

A.
B.
C.
D. . 1 mark

17. If P= is such that (where in superscript denotes

transpose), then the value of is

A.
B.
C.
D. . 1 mark

18. If , then the rank of is

A.
B.
C.
D. . 1 mark
 Statistics
19. If , then is
A.
B.
C.
D. . 1 mark

20. The following is the line plot of number of books bought by individual customers
at a bookstore in one day.

x
x x x
x x x x x
x x x x x x
1 2 3 4 5 6 7

The median number of books bought by customers is

A.
B.
C.
D. . 1 mark

21. The arithmetic mean and geometric mean of two observations are and
respectively. The two observations are
A.
B.
C.
D. . 1 mark
22. If and , then is equal to
A.
B.
C.
D. . 1 mark
23. The probability that a Poisson random variable takes a positive value is
. The mean of is
A. 0
B.
C.
D. . 1 mark
24. The variance of the first natural numbers is
A.

B.

C.

D. . 2 marks

25. and are independent events such that and , then

is equal to
A.

B.

C.

D. . 2 marks
26. The value of k for which the function

is a probability density function is

A.
B.
C.
D. . 2 marks
27. The mean and variance of a normal random variable X are 40 and 16 respectively.
Then is
A.
B.
C.
D. . 2 marks

28. The correlation coefficient between and is 0.6. If , , ,

and , then the regression of on is
A.
B.
C.
D. . 3 marks
 Data Interpretation
Answer the Questions 29-31 based on the composite bar-chart of cost of raw material,
wages, overhead costs, interest paid and profit over five successive years, given below.

500

400

300 Profit
Interest
200 Overhead
Wages
100 Raw Material

0
2012 2013 2014 2015 2016

-100

29. In which of the following years was the biggest change in the profit observed?
A. Between 2012 and 2013
B. Between 2013 and 2014
C. Between 2014 and 2015
D. Between 2015 and 2016. 1 mark
30. Which component of the cost of production has remained more or less constant
over the period?
A. Wages
B. Interest
C. Overhead
D. Raw material. 1 mark
31. Wages, as a percentage of total cost of production, was the largest in the year
A.
B.
C.
D. . 2 marks
Answer the Questions 32-34 based on the comparative bar chart of the production of
rice in four states in five successive years, given below. The data for 2016 are projected.

140
West Bengal
120
Andhra Pardesh
Annual production of rice

100 Karnataka
Kerala
(in lakh MT)

80

60

40

20

0
2012 2013 2014 2015 2016

32. In which of the following states did the production of rice increase every year?
A. West Bengal
B. Andhra Pradesh
C. Karnataka
D. Kerala. 1 mark
33. By what percentage was the production of rice in Kerala in 2015 less than the
production of rice in West Bengal in 2014?
A. 16.67%
B. 0%
C. 20%
D. 40%. 1 mark

34. What is the difference between the average production of rice in the states of
Andhra Pradesh and Karnataka over the period?
A. 34 lakh MT
B. 24 lakh MT
C. 14 lakh MT
D. 4 lakh MT. 2 marks
The market shares (in terms of the total number of vehicles sold) of five SUV models in
two successive years are shown in the following pie charts. Use the information given in
these to answer Questions 35-36.

2015
4%

30% 18%

11%
37%

2016
2%

9%
Fortuner
33%
Tata Sumo
Scorpio
Bolero
44%
12% Mahindra XUV

35. If the 2015 sales for all SUV models is 27,00,000 and these have grown by 25%
in 2016, then what is the approximate increase in the number of Scorpio vehicles
sold in 2016 over 2015?
A. 426,000
B. 456,000
C. 486,000
D. 506,000. 1 mark
36. If the 2015 sales for all SUV models is 2,700,000 and these have grown by 25%
in 2016, then how many SUV models have grown more than the average growth
rate of all the SUV models taken together?
A. 0
B. 1
C. 2
D. 3. 3 marks
In the following figure, the number of distributors of a company in six successive
years has been shown in a line graph overlaid on a bar chart depicting the sales (in
millions of rupees). Use this information to answer Questions 37-38.

3500 80

3000 70
60
2500
50
2000
Sales 40 Distributors
1500
30
1000
20
500 10
0 0
2011 2012 2013 2014 2015 2016

Sales Distributors

37. In which year were the sales per distributor lowest?

A. 2016
B. 2015
C. 2014
D. 2012. 1 mark
38. In which year did the sales increase (from the previous year) by a higher
percentage than the number of distributors?
A. 2016
B. 2012
C. 2014
D. None. 1 mark
 English
39. Choose the word that cannot be used as a synonym of “Smart”.
A. Savvy
B. Astute
C. Shrewd
D. Humdrum. 1 mark

40. Choose the word that can be used as a synonym of “Mesmeric”.

A. Piquant
B. Arid
C. Banal
D. Prosaic. 1 mark

41. Choose the word that cannot be used as an antonym of “Vehement”.

A. Effete
B. Decrepit
C. Supine
D. Underlying. 1 mark

42. Choose the word that can be used as an antonym of “Nefarious”.

A. Cruddy
B. Snide
C. Putrid
D. Virtuous. 1 mark

43. Find out the alternative which will replace ‘?’

Lion : Pride :: Fish : ?
A. Swimming
B. Shoal
C. Water
D. Humbleness. 1 mark

44. Find out the alternative which will replace ‘?’

Pen : Paper :: Brush : ?
A. Painting
B. Colour
C. Canvas
D. Board. 1 mark
45. One word for “Something that strongly attracts attention and admiration” is
A. cynosure
B. showy
C. winsome
D. copacetic. 1 mark

46. Someone who is new to a field or activity is called

A. kook
B. tyro
C. cretin
D. ignorant. 1 mark

47. Meaning of the proverb “A bird in the hand is worth two in the bush” is

A. One should not be jealous of what others have got.

B. One gets the fruits of one’s own actions.
C. A little fortune now will attract bigger fortune in future.
D. It is better to accept the little we have than reject it hoping to get a lot later.
1 mark

48. Meaning of the proverb “All roads lead to Rome” is

A. People with similar interests and tastes tend to group.

B. People can arrive at the same conclusion by different means.
C. Family ties are stronger than other relationships.
D. All evil will be finished in the end. 1 mark

49. Fill the blank in the following sentence:

Great people are indifferent ______ pain and pleasure.
A. to
B. in
C. for
D. about. 1 mark

50. Fill the blank in the following sentence:

Do his office colleagues know ______?
A. where from he comes
B. from where does he come
C. where does he come from
D. where he comes from. 1 mark
51. Fill the blank in the following sentence:
He was a little afraid in the beginning, ______ he visited the haunted fort.
A. despite
B. nonetheless
C. while
D. however. 1 mark

52. Fill the blank in the following sentence:

When you have an unpleasant boss, you simply have to ______ him.
A. put with
B. put up with
C. make up with
D. make with. 1 mark

53. Fill the blank in the following sentence:

During the struggling days of his life, he would have to ______ with a very small
house.
A. make up
B. make
C. make do
D. make upon. 1 mark

54. Identify the correct sentence.

A. In recent games, the performance of our players was worse as I had expected.
B. In recent games, the performance of our players was worse than I had
expected.
C. In recent games, the performance of our players was worse than expectation.
D. In recent games, the performance of our players was worst than that was
expected. 2 marks

55. Identify the correct sentence.

A. He is tired as he is working since 7 O'clock in the morning.
B. All the furniture in his house are made of teak.
C. I, you and my son will go to see the match next Sunday.
D. Factory workers are hell bent upon getting what is due to them. 2 marks
56. Identify the correct sentence.
A. Pay taxes lest you may be caught.
B. It is one and half hours since I took the medicines.
C. As the rainy season approaches, the number of patients in hospitals are
increasing by leaps and bounds.
D. The teacher asked why you are late? 2 marks

57. Select the most logical order of sentences from among the given choices to
construct a coherent paragraph.
P: The diet of the people having Orthorexia nervosa can actually be
unhealthy, with nutritional deficits specific to the diet they have imposed
upon themselves.
Q: Orthorexia nervosa is a condition in which the person develops fixation on
righteous eating.
R: They also lose the ability to eat intuitively – to know when they are
hungry, how much they need, and when they are full.
S: They may be socially isolated, often because they plan their life around
food.
The proper sequence should be
A. PQSR
B. QPRS
C. PSRP
D. QPSR. 2 marks

58. Select the most logical order of sentences from among the given choices to
construct a coherent paragraph.
P: Hackers may steal your personal information and may commit identity
theft.
Q: Identity theft may affect your personal financial circumstances costing you
and the banks millions.
R: If your identity is stolen, you may not get loans until the matter is cleared
up.
S: This may be done by contacting you and pretending to be from a
legitimate organization.
The proper sequence should be
A. PSQR
B. PRSQ
C. PQRS
D. PQSR. 2 marks
Read the passage below and answer Question No 59:
Traffic congestion or traffic jam is one of the biggest problems of urban India. The main
cause of traffic congestion is the country’s public transport infrastructure, which is failing
to keep up with the rapidly growing developments in the cities. There is an estimated one
lakh motorized vehicles travelling on Delhi roads per day. All this has not only led to
obvious delays and jams, but a high rate of accidents as well as increased air and noise
pollution. National Road Safety Council has been trying to formulate road safety policy
since 1988. Road safety policies were again attempted in 2003 by the Ministry of
Highways and Transport and in 2004 at the Annual Session of Indian Roads Congress,
the ministry introduced eleven elements for road safety policies under the title ‘Safer
Roads for Everyone’. These elements include the overall framework for road safety,
safety education and enforcement of the policies. There are a number of initiatives that
have already been set up in different parts of the country to relieve the problem of
congestion. The Intelligent Transport System is working to provide safe and accessible
public transport for commuters in India. Some examples include advanced traffic
management systems, wireless traffic signal controllers, CCTV junction surveillance,
electronic toll collection systems, advanced vehicle control systems and video incident
detection.

I. Main reasons of the traffic congestion in the cities include

i. lack of policies
ii. lack of infrastructure
iii. both i and ii above.
II. Main reasons of road accidents include
i. inadequate public transport infrastructure
ii. rapid urban development
iii. both i and ii above.
III. In order to reduce traffic congestion, the government emphasizes on
i. controlled urban development
ii. use of advanced techniques
iii. both i and ii above.

59. The correct answers to I, II and III are:

A. iii, iii and iii, respectively
B. ii, i and iii, respectively
C. ii, iii and ii, respectively
D. iii, iii and ii, respectively. 3 marks
Read the passage below and answer Question No 60:
During the early Vedic period, women enjoyed equal status with men in all aspects of
life. Rigvedic verses suggest that women were educated, married at a mature age and
were free to select their own husbands. Scriptures such as the Rig Veda and Upanishads
mention several women sages and seers. In approximately 500 B.C., the status of women
began to decline. Although various reform movements allowed women to be admitted to
religious orders, by and large women in India faced confinement and restrictions. Indian
women's position in society further deteriorated during the medieval period, when child
marriages and a ban on remarriage by widows became part of social life in some
communities in India. During the British Raj, many reformers fought for the betterment
of women. Women in India now participate fully in areas such as education, sports,
politics, media, art and culture, service sectors, science and technology, etc. Indira
Gandhi, who served as Prime Minister of India for an aggregate period of fifteen years, is
the world's longest serving woman Prime Minister. The Constitution of India guarantees
to all Indian women equality (Article 14), no discrimination by the State (Article 15(1)),
equality of opportunity (Article 16), and equal pay for equal work (Article 39(d)). In
addition, it allows special provisions to be made by the State in favor of women and
children (Article 15(3)), renounces practices derogatory to the dignity of women (Article
51(A) (e)), and also allows for provisions to be made by the State for securing just and
humane conditions of work and for maternity relief.

I. The status of women in Indian society is not equal to that of men because
i. in many parts of the country, some medieval customs are still practiced
ii. of the lack of equal women’s rights
iii. both i and ii above.
II. The improved status of women in modern India is reflected by
i. participation of women in different walks of life
ii. constitutional safeguards
iii. both i and ii above.
III. The status of women started deteriorating
i. before medieval period
ii. during medieval period
iii. after medieval period.

60. The correct answers to I, II and III are:

A. iii, iii and ii, respectively
B. i, iii and i, respectively
C. iii, iii and i, respectively
D. i, iii and ii, respectively. 3 marks
61. Classify each of the statements given below as Fact (F), Inference (I) or
Judgment (J).
I. Even a layman can see how closely chimpanzees resemble humans.
II. People love to see chimpanzees playing the drums or riding the bicycles.
III. As per surveys, the population of chimpanzees is decreasing.
A. JJF
B. FFI
C. JJI
D. IIF. 2 marks

62. Classify each of the statements given below as Fact (F), Inference (I) or
Judgment (J).
I. After a storm comes a calm.
II. If you drive just after consuming alcohol, you may meet with an accident.
III. People who talk a lot or threaten may not be actually harmful.
A. FIF
B. JFJ
C. JJJ
D. IFI. 2 marks
 Logical Reasoning

63. Identify the closest match to FISH : SCHOOL from the following choices.
A. Wolf : pack
B. Elephant : jungle
C. Beagle : clan
D. Herd : peacock. 1 mark
64. The next two elements of the sequence 17 32 19 29 21 26 23 are
A. 25 25
B. 20 22
C. 23 25
D. 25 22. 1 mark
65. If 8th December, 2008 was a Monday, which day of the week was it on 8th
December, 2007?
A. Saturday
B. Tuesday
C. Sunday
D. Friday. 1 mark
66. In a certain code, MONKEY is written as XDJMNL. How is TIGER written in
that code?
A. QDFHS
B. SDFHS
C. SHFDQ
D. UJHFS. 1 mark
67. Anil, introducing a woman in a party, said, she is the wife of the grandson of my
mother. Which one of the following choices is a possible description of how Anil
is related to the woman? (Assume no marriage between close relatives.)
A. Brother-in-law
B. Grandfather
C. Husband
D. Father-in-law. 1 mark
68. Out of forty students, 14 are taking English Composition and 29 are taking
Chemistry. If five students are in both the classes, how many students are in
neither class?
A. 2
B. 3
C. 5
D. 7. 1 mark
69. A watch gains time uniformly. It is 2 minutes slow at noon on Sunday, and is 4
minutes 48 seconds fast at 2 pm on the following Sunday. When was it correct?
A. 1:00 pm on Monday
B. 2:00 pm on Tuesday
C. 3:15 pm on Thursday
D. 3:15 pm on Wednesday. 2 marks

70. A, B, C, D, E, F, G and H are sitting in a row.

 A is fourth to the right of E.

 H is fourth to the left of D.
 C and F, neither of whom is sitting in an extreme position, are neighbours of
B and E, respectively.
 H is next to the left of A and A is the neighbor of B.
Who are sitting in the extreme ends?

A. E and G
B. E and D
C. H and A
D. H and B. 2 marks

*****
 Institute of Actuaries of India
Solutions for ACET OCT 2016

Mathematics
1. B. implies
i.e.
Thus , .

2. C. implies

3. A. Simple linear interpolation implies

This gives

4. B

= 2[(5×9)+ (10×3)+1]=152

5. D implies

Putting gives and gives

Thus .

6. C. = ( indeterminate form)
Using rule (indeterminate form)
Again using rule
7. B. implies .
Hence, .

8. A.
Hence log (log x) is increasing in x in [0,

9. A.
10. B. .
Therefore .

Hence, .

11. B.

12. C. substituting

Γ8

13. D. + - -3 +2 ) = [( ( )+(
=4
14. A. implies for some scalar t.
So + + +m +3 )
Equating the coefficients, we have, . Thus m= .

15. C. P= . Therefore

and = 9P. Likewise

The answer follows.

16. A. Since and ,

17. D. P= , and implies

2 giving x = 5.

18. D. Any two rows of order 2 and 3 are identical. Hence the rank is 1.

Statistics

19. D. : = 11: 5 implies / = 11/ 5.

i.e . This gives . Hence r = 5

20. A. The middle most number of the 15 observation is 8th observation. Hence median is 3.

21. C. Let x and y be the numbers. Then and

This implies . Substitution gives

Solving this equation gives the numbers as 45 and 5.

22. A. = 0.9

23. C
Hence the mean is 2.

24. B. Using the formula for sum to n terns of the natural numbers and sum of squares of n
natural numbers we get the solution.

25. A.

= 2/5.
26. B. 2 Using simple integration or identifying as the density of Triangular distribution.

27. B. [Std normal tables not

needed, as none of the other options do not even come close.]

28. D. It is easy to show that

The regression equation Z on X is ).
Substituting the values we get

Data Interpretation

29. C Between 2014 and 2015. This can be visually seen as we have negative profit in 2015
while the profit in 2014 was higher than that in 2016.

30. B. Interest . This can be visually observed very easily.

31. B. Wages remained nearly constant from 2013 to 2016. Therefore, among these four
years, wages( as a percentage of the total cost of production) was the largest in
2013.From 2012 to 2013, the wage rose faster than the total costs.

32. A. West Bengal.

33. B 0%.

34. C. 14 . The average production of Andhra Pradesh is 68 and the average production of
Karnataka is 54. Therefore the difference is 14.

35. C. 486000 . ( 486000= 44% * 2700000* 1.25 - 37% * 2700000).

36. D. 3. The models with higher than average sales would have larger market share (in
terms of number if vehicles sold) in 2016. Comparison of the pie charts show that the
shares of Scorpio, Bolero and Mahindra XUV increased in 2016 while that of Fortuner
and Tata sumo reduced.
37. A. 2016. The ratio comes to around 38.6 in 2016.

38. D. None

English

39. D
40. A
41. D
42. D
43. B
44. C
45. A
46. B
47. D
48. B
49. A
50. D
51. B
52. B
53. C
54. B
55. D
56. A
57. D
58. A
59. C
60. B
61. C
62. C

Logical reasoning

63. A. A group of fish is a school; a group of wolves is a pack.

64. C. Here, there are two alternating patterns. The first begins with 17 and adds 2; the
second begins with 32 and subtracts 3.
65. A. The year 2008 was a leap year. So, it had 2 odd days. So, the day on 8th Dec, 2007
will be 2 days before the day on 8th Dec, 2008. But 8th Dec, 2008 is Monday. Hence, 8th
Dec, 2007 is Saturday.
66. A. The letters of the word are written in a reverse order and then each letter is moved one
step backward to obtain the code.
67. D.
68. A.

69. B. From Sunday noon to the following Sunday at 2 pm there are 7 days 2 hours or 170
hours. The watch gains minutes in 170 hrs. Therefore, the watch gains 2
minutes in hours. Now, 50 hours means 2 days and 2 hours. 2 days
and 2 hours from Sunday noon would be 2 pm on Tuesday.
70. B. Using i, the order is E---A. Then, by using iv, the order is E--HAB. Then, by using the
information in ii, the order is E--HAB-D. Finally, by using the information in iii, the final
order is EFGHABCD.