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XAT 2027 · Decision MakingIn short
XAT's Decision Making section has about 21 questions in short caselets of 3–4 questions each, inside the shared 170-minute block. There is rarely a perfect answer: use the same five steps on every caselet, strike out extreme, unethical and buck-passing options first, and pick what a responsible manager could defend and act on now.
About 21 questions in short caselets. Use the same five steps every time, strike out the weak options first, and pick what a responsible manager could defend.
About 21 questions
Three or four per caselet
Five options
No formulas
Negative marking
Updated 5 Nov 2026
·
S
Reviewed by Sachin Sir (VARC)The five steps
1
Read the whole case first
2
Name the core problem
3
Separate facts from guesses
4
Strike out the weak options
5
Pick what a good manager would defend
Plan about 48 minutes for Decision Making inside the shared block.
The section
Judgment, not knowledge. Each caselet puts you in a manager's seat with imperfect options; the examiner rewards the answer that is fair, practical and within your role. You will meet three kinds of caselet.
Judgment, not knowledge. Expect three kinds of caselet.
People and ethics
Workplace conflicts, honesty, fairness to employees and customers.
Rewards: fair process, honesty, owning the decision.
Business and operations
Pricing, suppliers, launches, service problems, growth choices.
Rewards: practical, proportionate fixes within the decision-maker's authority.
Data-based
A short table or numbers you must read before you can judge.
Rewards: reading the data correctly before choosing.
The method
Use the same five steps on every caselet. Repeating one method is what makes you fast and consistent under time pressure.
The same five steps, every caselet.
1
Read the whole case first
Before you look at the options, know what happened, who decides and what the question actually asks.Ask yourself: whose decision is this, and what exactly am I asked?
2
Name the core problem
Say in one line what has to be decided and who is affected. Separate the symptom from the cause.Ask yourself: if I fix only one thing, what must it be?
3
Separate facts from guesses
Use only what the case says. Options that depend on facts the case doesn't give are usually wrong.Ask yourself: is this option relying on something I assumed?
4
Strike out the weak options
Drop anything illegal or unethical, extreme, passive, or that passes the problem to someone else.Ask yourself: would this survive a fair review by my seniors?
5
Pick what a good manager would defend
Choose the option you could explain to everyone affected and act on now, within your authority.Ask yourself: can I do this today, and defend it tomorrow?
Elimination
Most caselets have two or three options you can drop in seconds. Strike these out first, then compare what is left.
Drop these first, then compare what is left.
Strike out
Illegal or unethical
Breaks a law, a policy or basic honesty, however profitable.
Strike out
Extreme or punitive
Fires, bans or cancels before the facts are checked or a fair process is followed.
Strike out
Passive or postponing
Waits, ignores or 'monitors' when the case needs action now.
Strike out
Passing the buck
Hands your decision to a senior, a committee or the team.
Strike out
Ignores a key stakeholder
Helps one side by sacrificing another that the case clearly cares about.
Strike out
Assumes facts
Only works if something the case never says turns out to be true.
Want to practise this live with faculty?
Join the XAT Decision Making workshop in December.
Practice
Three original caselets in XAT's style, eight questions in all. Try each one before opening the answer, then check which of the five steps decided it.
Three caselets, eight questions. Try before you open the answer.
APeople and ethics · 3 questionsThe early delivery entries
Ritika leads a shipping team at a mid-sized logistics firm. In the monthly review she finds that Sameer, a senior member the whole team likes, has been marking shipments 'delivered' a day early so the team meets its on-time target, which decides everyone's quarterly bonus. No customer has complained yet. The firm's code of conduct requires accurate records, and Ritika's own manager has praised the team's on-time numbers to the leadership.
Q1. What should Ritika do first?
Show the answer and why the others fail
Answer: B. It stops the false entries, follows a fair process with Sameer and keeps her manager honestly informed. A is punitive before Sameer is heard; C ignores the code of conduct; D hides the problem from her manager and leaves the cause untouched; E passes her decision to the team.
Q2. Which would be the LEAST appropriate way to handle the quarterly bonus?
Show the answer and why the others fail
Answer: B. This is a reverse stem, so look for the worst option. B rewards falsified records, which is unethical whatever the motivation. The other four are reasonable steps.
Q3. Ritika then finds the target became unrealistic after a carrier changed its schedule. Which action best addresses the root cause?
Show the answer and why the others fail
Answer: B. It uses facts, stays within her authority and fixes the cause. A is outside her role and hidden; C burdens the team without fixing the cause; D is extreme without analysis; E is passive.
BBusiness and operations · 3 questionsThe delivery-app offer
Kiran runs a café chain's newest outlet near a college. A food-delivery platform offers to list the outlet for a 30% commission on each order, with a top listing for three months. Dine-in sales drop sharply in the summer vacation, when the college is shut. The outlet only broke even last quarter, and the owner wants Kiran's recommendation by Friday.
Q4. What should Kiran recommend?
Show the answer and why the others fail
Answer: C. It tests the opportunity where it helps most (the vacation dip) while protecting margins, and it has a review point. A rejects without evidence; B ignores the 30% cost on every item; D passes the buck; E is an ultimatum that assumes the platform will agree.
Q5. Which information would be MOST useful before deciding?
Show the answer and why the others fail
Answer: B. Whether delivery adds or loses money depends on item margins after commission. The others are background at best.
Q6. Two months in, delivery orders are high but dine-in customers complain about slow service. What should Kiran do?
Show the answer and why the others fail
Answer: C. It keeps both income streams and fixes the service problem now. A is extreme; B ignores a key stakeholder; D punishes the customers who are complaining; E is passive.
CData-based · 2 questionsThe evening batch
A coaching centre runs a two-month weekend course in two batches. The fee is for the whole course. Rent is ₹30,000 a month for the centre and is paid whether or not the evening batch runs. The accountant splits rent equally between batches and reports the evening batch at a small loss, so the owner wants to close it.
BatchStudentsFee (course)Teacher cost / month
Morning30₹6,000₹25,000
Evening18₹6,000₹40,000
Q7. If the evening batch is closed, what happens to the centre's total profit for the course?
Show the answer and why the others fail
Answer: B. Evening revenue is 18 × ₹6,000 = ₹1,08,000; its own cost is the teacher, 2 × ₹40,000 = ₹80,000. So it adds ₹28,000. The rent is paid anyway, so closing the batch removes ₹28,000 of profit. The 'loss' came only from the rent split.
Q8. What should the owner do?
Show the answer and why the others fail
Answer: B. The data shows the batch adds profit, so keep it and improve it. A misreads the data; C ignores students who chose evenings; D risks losing students to fix a loss that does not exist; E is extreme.
Traps
Guess or skip
With +1 for a correct answer, −0.25 for a wrong one, here is what each choice is worth on average:
Blind guess (5 options)0
One option struck out+0.06
Two options struck out+0.17
Down to two options+0.38
Skip, after your 8 free skips−0.10
Practice plan
1
Use the official papers
XLRI publishes past papers from 2018 to 2024 on xatonline.in. They have no answer keys, so check your reasoning with the five steps.
2
Write one line per caselet
After each one, write why the right option wins. It trains the habit the exam rewards.
3
Keep an error log
Note the step you skipped on every mistake. Most errors repeat.
4
Untimed, then timed, then full mocks
Start slow, move to timed sets, then take full XAT mocks so DM fits your section order.
A live online workshop in December, between CAT and XAT, run by Route99 faculty. Registration is required.
The caselet types XAT keeps repeating
The five-step method on fresh caselets
Timed practice, as in the exam
Answers reviewed with faculty
Decision Making workshop
Live online
We use your details only to send you the workshop dates and details.
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Decision Making is where XAT is won or lost.
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FAQ
How many Decision Making questions are there in XAT 2027?
XLRI expects about 21 Decision Making questions in XAT 2027, set as short caselets of three or four questions each, with five options per question. They sit in the same 170-minute block as Verbal & Logical Ability and Quant & DI, with no separate timer for the section.
How much time should I spend on Decision Making?
Plan about 48 minutes for Decision Making inside the shared block, then adjust to your mocks. Because XAT has no sectional timer, decide your section order before the exam and protect enough time for Decision Making, which needs careful reading rather than calculation.
Is there a fixed method or framework for XAT Decision Making?
There is no official framework, but one consistent method works: read the whole case first, name the core problem, separate facts from guesses, strike out weak options, and pick what a responsible manager could defend and act on now. Using it on every caselet makes you faster and more consistent.
Should I attempt Decision Making first in XAT?
Many students attempt Decision Making first, while they are fresh, because it needs close reading. Others start with their strongest section. Try both orders in full mocks, keep the one that gives you the best total, and make sure Decision Making never gets squeezed at the end.
Where can I find XAT Decision Making previous year questions?
XLRI publishes XAT question papers from 2018 to 2024 on xatonline.in. They come without answer keys, so work through each caselet with the five-step method and write one line on why your answer wins. The solved caselets on this page show how to check your reasoning.
Is there negative marking in XAT Decision Making?
Yes: +1 for a correct answer, −0.25 for a wrong one. The first 8 unattempted questions carry no penalty; each one after that costs 0.10 marks. So once your free skips are used, an educated guess is usually better than a skip.
Can I prepare for XAT Decision Making in a month?
Yes, if you practise daily. Learn the five steps in the first week, solve two or three caselets a day with an error log, move to timed sets in the second and third weeks, and take full XAT mocks in the last week to fix your section order.
Does Route99 teach XAT Decision Making?
Yes. Decision Making is covered in Route99's CAT courses, classroom and live online, along with the XAT mock pack of 10 full mocks and 15 sectionals, and the first mock is free. The live online Decision Making workshop in December adds timed practice with faculty.
Sources: xatonline.in (exam pattern, marking and previous papers). The caselets on this page are original, written by Route99 faculty.
Updated 5 Nov 2026 · Reviewed by Sachin Sir (VARC)
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