Boston Consulting Group Potential Test
Free Practice Test
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Free BCG Potential Test
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How to make the most of this practice test (1/2)
We have designed our tests to resemble the official BCG Potential Test as closely as possible. Here are
a few tips to use this test as efficiently as possible:
Do not print out the test.
Remember, the BCG Potential Test is an online test. When you will be sitting the test in BCG offices, you
will have to do the test on a computer screen and will not be allowed to print it. You should therefore get
used to reading the questions and documents on a computer screen and working out your answers on
scrap paper. If you print out the test and take notes directly on it, you will not experience the real test
conditions.
Do the whole test under real time conditions: you have 20 minutes to complete it.
At the end of the 20 minutes, put your pen down, even if no one is there to ask you to. The reason this is
important is that you need to track your progress across different sample tests. If you complete the test in
varying durations you will have no way to know for sure if you are progressing or not.
Check your answer sheet against the answer key.
Mark your score for each of the questions: +3 points for correct answers, -1 point for incorrect answers, 0
points for questions not answered. Then calculate your total score. Your objective is to improve your
score compared to the last sample test you tried. In fact, it is likely that your score in the first full test you
solve will be fairly low (30+ points). This is completely normal, as you are still learning about the format of
the test, and how to use your answering method within the time allocated. If you stick to the method, and
review your answers carefully, you should see a quick improvement in your score.
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How to make the most of this practice test (2/2)
Review the solutions in the answer key carefully
and compare them with your notes, to see why you didn’t approach the question correctly in the first
place. A careful review requires that you go through the steps given in the solution, pencil in hand, and
re-do all the steps that aren’t obvious to you. This will take some time, but will prove invaluable to your
progress.
Do the test again
Once you are comfortable with all the answers, you can move on to the next sample test. After going
through all the available practice tests, you should return to the ones you have already done, and make
sure that you can now solve them easily within the allocated time. When you do so, use blank scrap
paper, so that you don’t get distracted by your previous notes, and feel like you are under real test
conditions.
Finally, we are here to answer any of your questions, so if you get stuck trying to understand the
explanations in the answer key, just drop us a line at: support@igotanoffer.com. We’ll be happy to fill any
gaps!
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Instructions
Online case. During your recruiting process with BCG you will have to go through an online case. The
purpose of this exercise is to test your analytical and logic skills as well as your business sense.
Sample. This document is a sample of 10 questions put together by IGotAnOffer. Its purpose is to help
you prepare for the actual online exercise you will have to complete. We recommend you take no more
than 20 minutes to take this test.
Each question is divided into 2 parts:
• on the left, you will find the question itself
• on the right, you will find the information you need to answer the question
No calculator. This sample test has been designed to be completed without a calculator. However, we
have worked with candidates in Israel and Russia who have been allowed to use a calculator when
completing their test. We therefore advise you to contact your local HR at BCG to clarify whether you will
be allowed to use a calculator or not during your actual test. If you find out that you are allowed to use a
calculator, you should complete the test in about 16 minutes instead of the standard 20 minutes without a
calculator.
Scoring system. You should select one or more answers for each question. During the actual test you
will be able to move onwards and backwards and change your prior answers so you should feel free to
do the same here. For each right answer you will get +3 points, 0 points for no answer and -1 point for a
wrong answer.
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BCG Potential Test – PayCo
Question 1
What is the current cost per
sale for PayCo assuming all
lead sources have the same
conversion rate?
1.
2.
3.
4.
$39 / sale
$44 / sale
$49 / sale
$54 / sale
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Current lead mix: cost per sale
Case overview
Current situation
PayCo is a payments company that
processes debit card and credit card
transactions in the United States.
PayCo’s clients are shops such as
restaurants, bars, apparel shops,
supermarkets, petrol stations, etc.
Question
x rents
/ 23debit and credit card
The company
machines to its clients. It earns a rental
fee for the card machines as well as a
small fee for each card transaction
processed by their client.
The company works with banks to acquire
new clients. It purchases lists of
businesses from them and calls them to
sell card machines and services.
PayCo purchases lists of leads at
different prices from Alma Bank, Bingo
Bank and Com Bank.
Copyright © IGotAnOffer Ltd.
Doc 4
Cost per
lead ($)
Share of
total mix of
leads (%)
Alma Bank
$5
30%
Bingo Bank
$3
60%
Com Bank
$6
10%
Sales representatives call the leads to try
and sell them card machines and
services. The average conversion rate
from lead to actual customer is about
10%. The conversion rate is driven by:
1. The quality of leads provided (lead
needs service, can afford it, etc.)
2. The effort the sales agent puts in
(time spent, skills, etc.)
Sales representatives are organised in
three teams (one per bank). Each lead is
handled by one single sales
representative.
BCG Potential Test – PayCo
Question 2
Which of the following
statements would explain why
the conversion rate changes
from bank to bank:
a. The number of
representatives per team
varies
b. The sales representatives
salaries and bonuses vary
c. The type of business the
lead is in varies
d. The working hours of
individual sales agents
vary
1.
2.
3.
4.
Option b
Options a and b
Options a, b and c
Options b, c and d
Doc 1
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Current lead mix: cost per sale
Case overview
Current situation
PayCo is a payments company that
processes debit card and credit card
transactions in the United States.
PayCo’s clients are shops such as
restaurants, bars, apparel shops,
supermarkets, petrol stations, etc.
Question
x rents
/ 23debit and credit card
The company
machines to its clients. It earns a rental
fee for the card machines as well as a
small fee for each card transaction
processed by their client.
The company works with banks to acquire
new clients. It purchases lists of
businesses from them and calls them to
sell card machines and services.
PayCo purchases lists of leads at
different prices from Alma Bank, Bingo
Bank and Com Bank.
Copyright © IGotAnOffer Ltd.
Doc 4
Cost per
lead ($)
Share of
total mix of
leads (%)
Alma Bank
$5
30%
Bingo Bank
$3
60%
Com Bank
$6
10%
Sales representatives call the leads to try
and sell them card machines and
services. The average conversion rate
from lead to actual customer is about
10%. The conversion rate is driven by:
1. The quality of leads provided (lead
needs service, can afford it, etc.)
2. The effort the sales agent puts in
(time spent, skills, etc.)
Sales representatives are organised in
three teams (one per bank). Each lead is
handled by one single sales
representative.
.
BCG Potential Test – PayCo
Question 3
Assuming PayCo buys leads
from all three banks, what is
the maximum conversion rate
it could achieve?
1.
2.
3.
4.
10.5%
11.2%
11.8%
12.3%
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New lead mix: cost per sale
Bank by bank analysis
Conversion rate results
Alma Bank is a large commercial bank
from the East Coast of the US. Its clients
are mainly restaurants and shops.
After carrying out some research, your
team finds out that the conversion rate
actually differs between the three banks.
Com Bank has got a similar list of clients
to Alma Bank but is established on the
West Coast of the US.
PayCo needs to achieve its sales target
by using 300,000 leads per year.
Question
23
Bingo Bank x
is /established
in the Midwest
and primarily serves Mom and Pop
businesses.
The team at PayCo has always assumed
a similar conversion rate of 10% across
all three banks.
Copyright © IGotAnOffer Ltd.
Conversion
rate
# of leads
available
per year
Alma Bank
12%
100,000
Bingo Bank
8%
600,000
Com Bank
15%
80,000
BCG Potential Test – PayCo
Question 4
What would be the average
cost per sale for PayCo if it
sourced leads from the three
banks in a way that maximises
sales?
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New lead mix: cost per sale
Bank by bank analysis
1.
2.
3.
4.
$35.0 / sale
$37.5 / sale
$39.9 / sale
$39.6 / sale
Doc 4
Conversion rate results
Alma Bank is a large commercial bank
from the East Coast of the US. Its clients
are mainly restaurants and shops.
After carrying out some research, your
team finds out that the conversion rate
actually differs between the three banks.
Com Bank has got a similar list of clients
to Alma Bank but is established on the
West Coast of the US.
PayCo needs to achieve its sales target
by using 300,000 leads per year.
Question
23
Bingo Bank x
is /established
in the Midwest
and primarily serves Mom and Pop
businesses.
The team at PayCo has always assumed
a similar conversion rate of 10% across
all three banks.
Copyright © IGotAnOffer Ltd.
Conversion
rate
# of leads
available
per year
Alma Bank
12%
100,000
Bingo Bank
8%
600,000
Com Bank
15%
80,000
BCG Potential Test – PayCo
Question 5
Assume that the average
annual revenue per customer
for PayCo is $100, and that it
chooses the mix of leads that
maximises average
conversation rate.
What percentage difference in
profit margin would result
from this choice compared to
a 10% conversion rate across
all banks?
1.
2.
3.
4.
0.98%
-0.98%
1.48%
-1.48%
Copyright © IGotAnOffer Ltd.
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New lead mix: impact on profits
Bank by bank analysis
Conversion rate results
Alma Bank is a large commercial bank
from the East Coast of the US. Its clients
are mainly restaurants and shops.
After carrying out some research, your
team finds out that the conversion rate
actually differs between the three banks.
Com Bank has got a similar list of clients
to Alma Bank but is established on the
West Coast of the US.
PayCo needs to achieve its sales target
by using 300,000 leads per year.
Question
23
Bingo Bank x
is /established
in the Midwest
and primarily serves Mom and Pop
businesses.
The team at PayCo has always assumed
a similar conversion rate of 10% across
all three banks.
Conversion
rate
# of leads
available
per year
Alma Bank
12%
100,000
Bingo Bank
8%
600,000
Com Bank
15%
80,000
BCG Potential Test – PayCo
Question 6
Assume that the average
annual revenue per customer
for PayCo is $100, and that it
chooses the mix of leads that
maximises average
conversation rate.
What would be the change in
total profits compared to the
current situation?
1.
2.
3.
4.
$0.2M increase
$0.2M decrease
$0.3M increase
$0.3M decrease
Doc 1
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New lead mix: impact on profits
Bank by bank analysis
Conversion rate results
Alma Bank is a large commercial bank
from the East Coast of the US. Its clients
are mainly restaurants and shops.
After carrying out some research, your
team finds out that the conversion rate
actually differs between the three banks.
Com Bank has got a similar list of clients
to Alma Bank but is established on the
West Coast of the US.
PayCo needs to achieve its sales target
by using 300,000 leads per year.
Question
23
Bingo Bank x
is /established
in the Midwest
and primarily serves Mom and Pop
businesses.
The team at PayCo has always assumed
a similar conversion rate of 10% across
all three banks.
Copyright © IGotAnOffer Ltd.
Doc 4
Conversion
rate
# of leads
available
per year
Alma Bank
12%
100,000
Bingo Bank
8%
600,000
Com Bank
15%
80,000
BCG Potential Test – PayCo
Question 7
Which of the following
quantities, in addition to the
cost per lead, would you need
in order to calculate the full
cost per sale:
a. Hourly wage of sales
representative
b. Number of leads
processed per sales
representative per hour
c. Number of sales
representatives in each
team
d. Number of sales
managers in each team
1.
2.
3.
4.
Option a
Options a and b
Options c
Options c and d
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Sale representatives’ incentives
Day to day
Sale representatives’ compensation
PayCo’s sales representatives work from
9am to 5pm from Monday to Friday 47
weeks a year.
The sales representatives’ base salary
starts at $40k and increases by about 5%
per year for each additional year they stay
with the company.
Sales representatives are divided into
three teams. Each team deals with one of
the following lead sources: Alma Bank,
Bingo Bank and Com Bank.
Question x / 23
Every day, sales representatives receive
a list of 85 leads from their respective
bank and work through the list during the
day.
The list of leads they get are newly setup
businesses which are likely to require
debit and credit card payment processing
services.
Sales representatives simply cold-call the
leads and try to convince them to sign up
for PayCo services.
Copyright © IGotAnOffer Ltd.
Doc 4
In addition, sales representatives can
receive $10 for each sale they make.
The Head of Sales has noticed that sales
representatives for Bingo Bank are much
less motivated than their peers on
average.
After investigating, he found that these
sales representatives have been
consistently generating lower sales and
receiving smaller bonuses than their
peers.
BCG Potential Test – PayCo
Question 8
Which of the following
statements would NOT solve
the motivation problem of the
sales representatives in the
Bingo Bank team?
1.
2.
3.
4.
Work with Bingo Bank to
increase the quality of the
leads purchased from
them by PayCo
Group sales
representatives handling
different banks in a single
team and randomise the
allocation of leads
between them
Keep sales
representatives in
different teams but rotate
lead sources between
them
Increase bonuses to $20
per sale for all sales
representatives
Copyright © IGotAnOffer Ltd.
Doc 1
Doc 2
Doc 3
Doc 4
Sale representatives’ incentives
Day to day
Sale representatives’ compensation
PayCo’s sales representatives work from
9am to 5pm from Monday to Friday 47
weeks a year.
The sales representatives’ base salary
starts at $40k and increases by about 5%
per year for each additional year they stay
with the company.
Sales representatives are divided into
three teams. Each team deals with one of
the following lead sources: Alma Bank,
Bingo Bank and Com Bank.
Question x / 23
Every day, sales representatives receive
a list of 85 leads from their respective
bank and work through the list during the
day.
The list of leads they get are newly setup
businesses which are likely to require
debit and credit card payment processing
services.
Sales representatives simply cold-call the
leads and try to convince them to sign up
for PayCo services.
In addition, sales representatives can
receive $10 for each sale they make.
The Head of Sales has noticed that sales
representatives for Bingo Bank are much
less motivated than their peers on
average.
After investigating, he found that these
sales representatives have been
consistently generating lower sales and
receiving smaller bonuses than their
peers.
BCG Potential Test – PayCo
Question 9
Which of the following
measures would best help the
company to fully prevent sales
representatives from agreeing
unprofitable prices with future
customers?
1.
2.
3.
4.
Train sales
representatives to
negotiate better prices
with leads
Fine sales representatives
when they give
unprofitable prices
Incentivise sales
representatives to sell at
higher prices with a
different bonus system
Set up an audit team that
would check prices and
validate contracts before
they count towards sales
representatives’ total
sales
Copyright © IGotAnOffer Ltd.
Doc 1
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Doc 4
Incentive structure
Current issue
Sales representatives are currently only
incentivised based on the number of
customers they manage to sell to.
The head of finance of the group has
noticed that the prices at which sales
representatives agreed to provide
PayCo’s services have decreased in the
Question
x / 23
past few months.
The head of sales suspects that this
might be due to sales representatives
selling at increasingly lower prices to
increase their bonus.
Pricing
When selling PayCo’s services, sales
representatives negotiate a share of their
customers’ future revenue.
For debit cards, they usually agree a price
of about 15 cents per future transaction
processed for the client. For instance, if
PayCo processes a debit card transaction
for a sandwich at $5, they will receive 15
cents from the sandwich shop in
exchange for their service.
For credit cards, the price agreed is a
percentage of the transaction instead of a
fixed fee. This percentage is usually
around 1.5%. The average split of debit
and credit card transactions is 40-60
(debit – credit).
Lately, sales representatives have been
found to sell PayCo’s services at
increasingly less profitable prices.
BCG Potential Test – PayCo
Question 10
Which of the following
statements is supported by
the information available to
you?
1.
2.
3.
4.
PayCo would achieve
higher revenues if all
transaction fees came
from debit cards
Credit card transactions
contribute more to
PayCo’s annual revenues
than debit card
transactions
Leads from Alma Bank
contribute more to
PayCo’s revenues
compared to leads from
Bingo Bank
None of the above / we
lack sufficient information
Doc 1
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Doc 3
Doc 4
Incentive structure
Current issue
Sales representatives are currently only
incentivised based on the number of
customers they manage to sell to.
The head of finance of the group has
noticed that the prices at which sales
representatives agreed to provide
PayCo’s services have decreased in the
Question
x / 23
past few months.
The head of sales suspects that this
might be due to sales representatives
selling at increasingly lower prices to
increase their bonus.
Pricing
When selling PayCo’s services, sales
representatives negotiate a share of their
customers’ future revenue.
For debit cards, they usually agree a price
of about 15 cents per future transaction
processed for the client. For instance, if
PayCo processes a debit card transaction
for a sandwich at $5, they will receive 15
cents from the sandwich shop in
exchange for their service.
For credit cards, the price agreed is a
percentage of the transaction instead of a
fixed fee. This percentage is usually
around 1.5%. The average split of debit
and credit card transactions is 40-60
(debit – credit).
Lately, sales representatives have been
found to sell PayCo’s services at
increasingly less profitable prices.
Copyright © IGotAnOffer Ltd.
Structure of answer key
Regular BCG Potential test
answers
IGotAnOffer special tips
and detailed answer
We have just introduced “IGotAnOffer special tips” to the Free BCG Potential test. This new feature aims to give some
extra information based on our experience on the BCG Potential test, while the “Regular BCG Potential test answers”
just provide you with the right answer.
We want to know how useful you find these new features before rolling them out to our other BCG Potential tests. If
you liked this free BCG Potential test, please take a few seconds to send us an email at contactus@igotanoffer.com
and tell us how valuable you found the special tips. Thanks!
Copyright © IGotAnOffer Ltd.
Answer key
Question 1
Correct answer: 1
This calculation can be broken down into two steps:
1.Calculate cost per lead
2.Calculate cost per sale
The cost per lead needs to be calculated across all
three banks, taking into account their total share of
mix: $5 x 30% + $3 x 60% + $6 x 10% = $3.9 / lead
The cost per sale can be calculated by dividing the
cost per lead by the conversion rate: $3.9 / 10% =
$39.0.
The correct answer is therefore answer 1.
Copyright © IGotAnOffer Ltd.
Answer key
Question 2
Correct answer: 4
The conversion rate depends on two drivers: the
quality of leads provided and the effort put in by the
sales agents. Each answer needs to be evaluated
against the two drivers. Also note that each lead is
handled by a single sales agent.
a. Increasing the number of representatives can
increase the volume of leads handled but not the
conversion rate as each lead is dealt with by a
single agent
b. The sales agents’ salaries and bonuses directly
influence the effort they put in and therefore the
conversion rate
c. The type of business the leads is in influences the
quality of the lead. For instance, if the business is
a van that sells ice cream, it probably will not
accept debit cards and therefore is not a good
potential lead
d. The working hours of sales representatives directly
impacts the effort they put in
Therefore options b, c and d impact the conversion
rate and so answer 4 is the correct answer.
Copyright © IGotAnOffer Ltd.
Answer key
Question 3
Correct answer: 2
In order to maximise its conversion rate, PayCo needs
to rank lead sources from the highest to the lowest
conversion rates. It should then use as many leads
from the first source before considering the second
one:
1. Com bank 15%; 80,000 leads available
2. Alma bank 12%; 100,000 leads available
3. Bingo bank 8%; 600,000 leads available
PayCo needs 300,000 leads per year to meet its
target sales. To maximise the conversion rate, the
lead mix should then be:
1. Com bank: 80,000
2. Alma bank: 100,000
3. Bingo bank: 120,000
The maximum conversion rate achievable is then:
(15% x 80,000 + 12% x 100,000 + 8% x 120,000) /
300,000 = 11.2%
The correct answer is therefore answer 2.
Copyright © IGotAnOffer Ltd.
Answer key
Question 4
Correct answer: 3
The maximum sales target is the one that can be
achieved by using the maximum conversion rate
based on the available leads.
The average cost per sale can be calculated as: the
sum of the number of sales based on the number of
leads per bank from question 3 and the conversion
rate multiplied with the cost per sale per bank and
divided by the total number of sales (weighed
average).
Sales per bank:
1. Alma bank: 100,000 leads x 12% = 12,000 sales
2. Bingo bank: 120,000 leads x 8% = 9,600 sales
3. Com bank: 80,000 leads x 15% = 12,000 sales
For each bank, the cost per sale can be calculated by
dividing the cost per lead by the conversion rate:
1. Alma bank: $5 / 12% = $41.7
2. Bingo bank: $3 / 8% = $37.5
3. Com bank: $6 / 15% = $40
Therefore the average cost per sale is:
((12,000 x $40) + (12,000 x $41.7) + (9,600 x $37.5)) /
(12,000 +12,000 + 9,600) = $39.9
The correct answer is therefore answer 3.
Copyright © IGotAnOffer Ltd.
IGotAnOffer special tip
It is quite common to have to use data from previous
questions in the BCG Potential Test. Sometimes the
data will come from a previous answer and
sometimes from the previous document itself.
Therefore it is critical that you understand every piece
of data given in a previous question or calculated in a
previous answer.
Since this is an online test in order to avoid going
back and forth on your screen we recommend to
keep your notes in your draft paper very clear and
highlight (e.g. by drawing a box around it) the key
information that you think might be relevant in the
coming questions.
Answer key
Question 5
Correct answer: 4
This question can be solved using a three-step
approach:
1. Calculate the profit margin with a 10% conversion
rate across all banks
2. Calculate the profit margin using the average cost
per sale
3. Calculate the percentage difference between the
two margins
The cost per sale for 10% conversion rate is $39
according to Question 1. As a consequence, the
current margin is ($100 - $39) / ($100) = 61%
The average cost per sale is $39.9 according to
Question 4. The profit margin would therefore become
($100 - $39.9) / ($100) = 60.1%
The percentage difference is therefore (60.1% - 61%)
/ (61%) = -1.48%
Copyright © IGotAnOffer Ltd.
Answer key
Question 6
Correct answer: 1
To calculate total profits in each situation we need to:
1. Calculate the number of customers: # of leads x
conversion rate (A)
2. Calculate the revenues for all customers: (A) x
$100 (B)
3. Calculate profits: (B) x profit margin for each
situation
Profits in the current situation are:
• 300,000 x 10% x $100 x 61% = $(300,000 x 6.10)
Profits with the maximum conversion rate are:
• 300,000 x 11.2% x $100 x 60.1% = $(300,000 x
6.73)
The difference between the two is therefore:
• (300,000 x 6.73) – (300,000 x 6.10) = 300,000 x
0.63 = $189,000 ≈ $0.2M
The correct answer is therefore answer 1.
Copyright © IGotAnOffer Ltd.
IGotAnOffer special tip
Notice here how you can minimise the number of
difficult calculations you are doing to answer the
question.
Instead of fully calculating profits in the current
situation ($300,000 x 6.10) and profits in the new
situation ($300,000 x 6.73) and then subtracting them,
we factorised the two products into ($300,000 x 0.63).
This enabled us to do one multiplication instead
of 2.
As you answer BCG Potential Test questions you
should look for this type of opportunity to minimise the
number of difficult calculations you have to make.
Answer key
Question 7
Correct answer: 2
The cost per sale calculated in previous questions
only includes the cost related to the purchase of leads
from the different banks. It does not include the cost
related to the sales force.
Calculating the full cost per sale would require
knowing how much sales representatives cost per
customer acquired. The different answers need to be
evaluated against this criterion:
a. The hourly wage of sales representatives would be
helpful to calculate the cost of sales per customer
acquired
b. The number of leads processed per hour per
agent would also be helpful, as it would allow you
to calculate the cost allocation between the
different leads
c. The number of sales reps per team would not be
helpful as each lead is handled by a single agent
d. The number of sales managers would not help
determining the sales cost per customer acquired
Answer 2 is therefore the correct answer.
Copyright © IGotAnOffer Ltd.
Answer key
Question 8
Correct answer: 4
The head of sales’ initial conclusion is that sales
representatives handling Bingo Bank leads “have
been consistently making less sales and getting lower
bonuses than their peers”.
Indeed, the conversion rate for leads from Bingo Bank
is lower than that for other banks. The comment
implies that, to increase sales representatives’
satisfaction, their bonus would need to be similar
relative to their peers.
However, if bonuses increase to $20 per sale for all
sales representatives, the relative bonus obtained by
sales representatives focused on Bingo Bank will not
increase.
Answer 4 would therefore not help solve the problem
and is the correct answer.
Copyright © IGotAnOffer Ltd.
IGotAnOffer special tip
Some questions are phrased negatively in the BCG
Potential Test. For instance here you are asked to find
which statement “would NOT solve the motivation
problem…”
Thinking in negative terms is harder than thinking in
positive terms. We therefore suggest that you
rephrase negative questions as positive ones.
Here, you should ask yourself: ‘Would this initiative
increase the Bingo Bank team’s motivation?’
Answer 4 is the only option that would not help to
increase the motivation of Bingo Bank’s team.
Answer key
Question 9
Correct answer: 4
Answers 1 to 3 would all help decrease sales
representatives’ tendency to sell at unprofitable
prices. However, none of them would completely stop
the trend:
1. Training sales representatives to give better prices
could still result in sales representatives giving
unprofitable prices in practice.
2. Giving a fine to sales representatives, while a
good incentive, is not guaranteed to fully stop the
trend.
3. Similarly, setting up a better incentives scheme is
also not guaranteed to halt the trend.
Answer 4 is the correct answer because it fully
prevents sales representatives from selling at
unprofitable prices via an external audit team.
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Answer key
Question 10
Correct answer: 4
None of the first three options is completely accurate
based on the information we have:
1. PayCo makes 15 cent for every debit card
transaction and 1.5% for every credit card
transaction. For every transaction higher than $10
PayCo therefore receives a higher fee from credit
cards. We do not know the average transaction
size and therefore cannot conclude.
2. We know that the debit / credit card split is 40% /
60%. However we do not know the average debit /
credit card transaction size. As a consequence, we
cannot conclude if answer 2 is correct or not.
3. We know that leads from Alma Bank are mainly
restaurants and shops and that leads from Bingo
Bang are mainly Mom and Pop businesses.
However, we do not have any information on the
volume and type of transactions these businesses
make. We therefore cannot conclude that this
statement is true.
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